Wednesday, 05 May 2010
Reuters reported that Indonesian coal prices rose last week on strong demand from China and India, while wet weather hindered supplies in Kalimantan, the country's coal producing region on Borneo island.
Indonesian coal with a heating value of 6,300 kcal/kg has been offered at around USD 75 a tonne ADB basis FOB Kalimantan up from USD 70 per tonne earlier.
Producers expect prices will continue upwards until June or July as Chinese and Indian buyers seek more coal to offset tight supplies at home.
A trader at a foreign firm in Jakarta said “Buyers are still looking for cargoes. They can't buy from Australia due to port constraints, and South African coal is more expensive, so they have returned to Indonesia.”
He added that “Most Indonesian producers have fully booked for May delivery. They still have some space for June and July, but they haven't fixed prices yet because they want to take advantage of rising prices.”
A prolonged wet season has left many Indonesian producers in Kalimantan struggling to meet orders and PT Bayan Resources Tbk recently declared force majeure on shipments from its Gunung Bayan mine because of heavy rain and flooding.
(Sourced from Reuters)
Review: http://www.steelguru.com/news/index/MTQ0Mjk3/Indonesia_steam_coal_prices_up_as_rains_curb_supply.html
Reuters reported that Indonesian coal prices rose last week on strong demand from China and India, while wet weather hindered supplies in Kalimantan, the country's coal producing region on Borneo island.
Indonesian coal with a heating value of 6,300 kcal/kg has been offered at around USD 75 a tonne ADB basis FOB Kalimantan up from USD 70 per tonne earlier.
Producers expect prices will continue upwards until June or July as Chinese and Indian buyers seek more coal to offset tight supplies at home.
A trader at a foreign firm in Jakarta said “Buyers are still looking for cargoes. They can't buy from Australia due to port constraints, and South African coal is more expensive, so they have returned to Indonesia.”
He added that “Most Indonesian producers have fully booked for May delivery. They still have some space for June and July, but they haven't fixed prices yet because they want to take advantage of rising prices.”
A prolonged wet season has left many Indonesian producers in Kalimantan struggling to meet orders and PT Bayan Resources Tbk recently declared force majeure on shipments from its Gunung Bayan mine because of heavy rain and flooding.
(Sourced from Reuters)
Review: http://www.steelguru.com/news/index/MTQ0Mjk3/Indonesia_steam_coal_prices_up_as_rains_curb_supply.html
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