Indonesian coal prices steady to slightly firmer

Physical Indonesian thermal coal prices were steady to slightly firmer in a relatively thinly traded market, with a number of participants attending a large industry conference in China.

A May-loading geared supramax cargo may have traded at $38.50/t in the actively traded GAR 4,200 kcal/kg market. This is higher than similar transactions involving the same type of coal and same vessel size that traded yesterday at $38/t, although these were for April loading. A bid for a late April-loading geared supramax GAR 4,200 kcal/kg emerged at $38/t, which is higher than a bid yesterday at $37.50/t, although buyers in China were at $37/t today.

A May-loading cargo of this coal may be being offered at $38/t, although the exact specifications such as sulphur levels could not immediately be determined. Sellers at the Coaltrans China conference in Shanghai were offering late April-loading supramax cargoes at $39/t.

A cross-month late April/early May loading geared supramax GAR 4,200 kcal/kg cargo in comparison traded last week at $37.50/t. A late April/early May Panamax cargo of the same coal traded at $37.75/t last week, although Argus does not include this vessel size in the index for this type of coal. A Panamax cargo of this coal was being offered today at $39/t.

Argus last assessed GAR 4,200 kcal/kg prices on 5 April at $37.29/t, up by 78¢/t from the previous week.

ICI 4 derivatives trade picks up

In the ICI 4 derivatives market, which clears on the CME, two 10,000t clips traded, both brokered by Singapore-based Evolution. The first of these was for April and was done at $37.60/t, with the second done at $37.65/t for May. April was bid at $37/t and offered at $38/t today. April ICI 4 contracts were bid at $37/t yesterday and offered at $37.90-38/t with Singapore-based brokers.

Trade was relatively limited elsewhere in the Indonesian physical market. A GAR 5,100 kcal/kg cross-month late April/early May-loading Panamax may have traded at $51/t, although this is outside the current bid and offer range, with bids at $54/t and offers at $54/t and $54.50/t.

Argus last assessed fob Indonesia prices of GAR 5,000 kcal/kg coal on 5 April, down by $1.34/t from a week earlier at $53.17/t.

May and June Capesize cargoes of NAR 5,500 kcal/kg coal in the Australian thermal coal market are being bid at around $56-57/t fob Newcastle and offered at $60/t fob Newcastle. A May-loading Capesize possibly sold for $58/t fob Newcastle but that could not be confirmed.

The higher calorific value market saw a May-loading 25,000t clip of NAR 6,000 kcal/kg coal traded at $70/t fob Newcastle on screen. Another cargo with the same specifications also traded at a $4/t discount to the GlobalCoal index.

China's domestic market saw offers of domestic coal increased to around 630 yuan/t fob north China ports today on planned maintenance on the Daqin rail line, which started on 6 April and will run until 30 April.

China's futures market saw the Zhengzhou commodities exchange May contract close at Yn616.60/t today, down by Yn2.40/t from yesterday.