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Imported coal trades impeded by low bids

Date:12/05/2015   View: 1332   Tags: coal bids
Scarce deals were made for Australian and Indonesian coals by Chinese utilities, since their bids have been too low to be accepted by foreign miners, which boils down to weak demand in China’s coastal thermal coal market on the whole.
A Beijing-based trader said June-delivery 5,500 Kcal/kg NAR Australian coal was offered at $47/t, FOB Newcastle, but less likely to be sold to China due to lower bids from Chinese buyers.  
A Zhejiang-based trader heard a bid at $51/t, CFR south China ports, for same-CV Australian cargo, but too low to be accepted.
According to a Dalian-based trader, the bid for a Panamax cargo of Australian 5,500 Kcal/kg NAR, May-delivery, was heard at 397 yuan/t ($63.9/t), VAT inclusive, CFR Fangchenggang port in south China-based Guangxi province; while that for a Capesize cargo of such coal, May-delivery, was at 391 yuan/t, VAT inclusive, CFR Xinsha port, the largest inland port in south China.  
The offer prices for Australian 5,500 Kcal/kg NAR cargo were also heard at $46/t FOB and $52/t CFR, respectively, while a Fujian-based trader heard same-CV cargo was sold to a local power plant at lower than 400 yuan/t FOB, VAT inclusive.
With respect to Indonesian coals, June-delivery 4,700 Kcal/kg NAR was offered at $44/t, FOB Kalimantan, said a Shandong-based trader.
An east China-based trader said a Chinese utility, who already signed contract for buying Indonesian 4,700 Kcal/kg NAR coal at $46/t FOB, intended to break the contract to lower the bid.
"I haven’t heard any buying interest for Indonesian coals for quite a while,” said the trader.
A Guangdong-based trader said Indonesian 4,700 Kcal/kg NAR product was offered at $44-45/t FOB, while 3,800 Kcal/kg NAR was traded at $31.5-32.5/t FOB.
Although the continuous storms hitting east Kalimantan did interrupt coal outbound shipment from port, the demand from Chinese buyers remained slack, it seemed that the impact from bearish market overwhelmed that from wild weather, added the trader.
A second Guangdong-based trader said Indonesian 4,700 Kcal/kg NAR and 3,800 Kcal/kg NAR were offered at $45/t and $31.7-32/t FOB.
"The booking demand for May-deliveries is still weak, and the prices are likely to drop further,” said the trader.
A south-China based trader said Indonesian 3,800 Kcal/kg NAR cargo, offered at 300-310 yuan/t, ex-stock Guangzhou port, remained in dull sales.
On May 11, the Fenwei/Platts CCI8 index assessed imported 5,500 Kcal/kg NAR coal at $52.0/t, CFR south China ports, up $0.2/t from May 8 but dipping $0.2/t from the previous week.
On the same day, CCI7 for imported 4,700 Kcal/kg NAR coal traded at southern China ports was assessed at $48.5/t, CFR basis, flat with May 8 and down $0.8/t on week.

 

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