Singapore (Platts)--30Apr2012
Indonesian thermal coal prices were stable Monday with no reported trades ahead of holidays this week in some parts of Asia. But market sources said they believed that demand from China would rise in the near term.
Markets in China, Singapore and India will be closed on Tuesday for Labour Day holiday.
"Buyers are holding back...now. India and China seem to be quiet," a Singapore-based source said.
Demand from China is expected to improve in July as the approaching summer is expected to lead to lower hydroelectric power generation and higher need for electricity, an Indonesia-based source said.
"We are waiting for that (summer demand)," he said.
Higher freight rates are affecting demand, market sources said.
Platts assessed the daily Panamax freight rates from South Kalimantan to India's west coast at $10.80/mt and to the east coast at $10.30/mt, both unchanged from Friday, when it had assessed these rates higher on-day.
However, the Indonesia-based source said higher freight rates might be favourable for Indonesia, given its proximity to major coal consuming countries, as freight rates for cargoes from America and Australia might get impacted due to their longer journeys.
Rains in Kalimantan continue, but it is not heavy enough to impact production, this source said.
Platts assessed the daily 90-day prices for FOB Kalimantan 5,900 kcal/kg GAR at $90.25/mt, and 5,000 kcal/kg GAR at $70.50/mt, both unchanged from Friday. They are down 75 cents and 25 cents, respectively, since April 2.
--Deepak Kannan
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