With the Indonesian government setting November (board) (FOB) coal prices at an average November price of $ 55.71 per ton, up 9.2% from October's FOB price, the CIL has started talking to importers about whether they are domestic. Can meet your requirement through coal.
New Delhi (Natural Energy News): With the rise in Indonesian thermal coal prices, Coal India (CIL) is looking at an opportunity to replace imported thermal coal with a domestic variety known by the government's 100 million tonnes (MT) mandate for imported thermal replacement.
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With the Indonesian government setting November (Board) (FOB) coal prices at an average November price of $ 55.71 per ton, up 9.2% from October's FOB price, CIL has begun talking to importers about whether they are domestic. Can meet your requirement through coal. “We have already discussed with 300 importers and are pursuing their requirement from domestic sources. A CIL official said, rising international coal prices in the last fortnight could offer CIL an inauguration.
PSU Minor, sadly with a stock of 91 metric tons in the system (53.5 metric tons at the top of the pit and 37.5 metric tons in the power plants) is looking for new avenues to pursue coal. Although power sector demand suddenly rose by over 13% in October, it again declined in November and non-power allowed Impetus to lift 12.3 metric tons, an increase of 46% y-o-y. This helped CIL's y-o-y grow 8% in November. Advancing imports in view of the demand from the power sector may help to grow further.
Indonesian coal prices (FOB) stood at $ 67.09 per tonne in March this year, which came down to $ 49.42 per tonne in September this year, for which imports declined despite government efforts. However, according to a report by Platte, November's Indonesian average coal prices were down 15.1% y-o-y, given the recent price trends that open opportunities for CIL in November.
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Indonesian coal prices are bound to increase from December onwards as demand from China, Japan and South Korea is increasing. In addition to skyrocketing, ocean freight could put importers at a disadvantage, trying to cash in on CIL.
CIL's special spot e-auction for coal importers is receiving a premium of 21% as against 14% in October, with 3.3 MT booked in November. The quantity booked in November is double the 1.6 MT booked in October when CIL first introduced this window. Therefore, importers have increased e-auction sales with total sales of 77% between April and November. The five auction windows booked a total of 68.3 metric tons, 30 metric tons more than the year-ago period.
Non-electricity customers reserved 17.4 Million Tonnes by exclusive auction, which was 25.5% of the whole allocated amount for November. Bookings from non-electricity consumers increased by 262% for April-November compared to 4.8 MT a year earlier.
During November, e-auction volume bookings stood at 9.4 MT, up 23.7% over O-Y, but it received a 30% premium on notified prices, a big jump from the 13% premium received in October.
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“Given the market response to the e-auction, there is a powerful chance that the bookings may overstep 100 Million Tonnes in this year. For now, the priority is on quantity growth. A senior executive of CIL said, in case of e-auction, add-on subsidy will be available on the notified price, price-wise and grade-wise on-demand basis.
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