Weak demand pressures low-CV Indonesian coal prices
The low calorific value (CV) Indonesian physical coal market came under further pressure from weak Chinese demand, as details emerged of a deal concluded at a lower price than recent similar transactions.
An early December loading geared Supramax GAR 4,200 kcal/kg cargo traded today at $33.85/t. This is below the latest Argus price assessment for this grade of coal at $34.33/t on 8 November and also below the $34.50-34.75/t range at which cross-month late November to early December-loading geared Supramax GAR 4,200 kcal/kg cargoes traded late last week.
Despite this, several producers kept their offer prices high at around $35/t for December-loading shipments on expectations demand could begin to increase again from next month. China's lunar new year holiday falls in January next year, earlier than usual, which could bring forward the typical pre-holiday restocking. Chinese import quotas are also expected to be reset in January, when cargoes that are sold in December are likely to arrive at Chinese ports.
In the ICI 4 derivatives market, a 15,000t December clip traded at $34.05/t, brokered by Singapore-based Evolution. This was up from yesterday's Argus settlement price for this month at $33.60/t. But bids and offers in the ICI 4 futures market remained scarce, with November contracts bid at $34/t and December bid at $33.80/t against no corresponding offers.
In the Australian thermal coal market, a December-loading Panamax of NAR 5,500 kcal/kg coal was offered at $51/t fob Newcastle on the Global Coal screen. That is down from the most recent Argus assessment of $51.18/t fob Newcastle on 8 November.
China's domestic coal prices showed signs of stabilising yesterday and today. Bids for NAR 5,500 kcal/kg coal were no higher than 550 yuan/t fob northern China ports today, while offers were around Yn555/t.
In China's futures market, the January contract on the Zhengzhou commodity exchange closed at Yn550.6/t, up by Yn0.8/t on the day.
source: Argus Media
Top News
Six last month
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Gold loses some luster after Trump’s decisive win
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Hedge funds slash bullish wagers on gold over Trump election win
Resolute Mining says it will pay Mali $160 million in tax dispute
Families gather at South African mine shaft where hundreds are feared stuck underground
Higher silver supply to reduce global deficit by 4% in 2024
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
China’s germanium, gallium ban could cost the US $3.4 billion
South Africa police standoff with illegal gold miners escalates
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Resolute Mining says it will pay Mali $160 million in tax dispute
Trump chooses oil fracking boss as energy secretary
Gold loses some luster after Trump’s decisive win
