Asian thermal coal trading was close to a standstill as softer buying interest met producers' reluctance to cut price targets. Indian utility stocks stood at 20.25 million metric tons on Oct. 27, just over six days of consumption.
Trading nearly stopped as buyers pulled back and miners held offers, while holders of Golden Week-period purchases tried to sell inventories.
Indian utility stocks of 20.25 million t, just over six days of burn, keep power-sector priority high and push other users to imports.
Whether pre-winter stockpiling in China starts, and whether Indian demand eases in November after the festival period.
Trading in the Asian thermal coal market came close to a halt, with thinner buying interest from key consuming countries colliding with firm offers from producers. Volumes were low as the standoff continued.
A Singapore-based market source said that traders who bought cargoes around China's Golden Week holiday were trying to sell down inventories, worried that prices could fall further. The expected winter demand pick-up has not yet appeared, but miners showed little willingness to lower their price targets, keeping offers elevated.
China and Indonesia
An Indonesian miner said Chinese buying appetite had cooled in the short term but expected momentum to recover once pre-winter stockpiling gets fully under way.
India
Commercial activity in India stayed subdued, and a persistent gap between bids and offers was visible even among sponge iron producers. The Indonesian miner said it had received some inquiries for mid-calorific value (CV) coal from Indian buyers, but their bids were well below those from North Asian utilities.
Market participants in India expect domestic power demand to ease through November after the festival season, which could relieve pressure on local supply chains. Heavy coal burn over the past month drew down utility stockpiles, leading authorities to give priority to the power sector and pushing non-power consumers toward imported coal.
Data from India's Central Electricity Authority showed power plant stocks of 20.25 million metric tons as of Oct. 27, equal to just over six days of consumption. Stocks were at critical levels at 82 plants running on domestic coal and at seven import-dependent plants.
North Asia and logistics
Demand for mid-CV grades from South Korea and Taiwan remained steady. A Philippine buyer said limited availability meant mid-CV coal continued to command large premiums over lower-energy grades.
In Indonesia, logistics were mixed. Recent rain in Central Kalimantan did little to lift river levels, so transport bottlenecks persisted for several miners, although some producers said they operated without disruption.
Photos: Photo: consigliere ivan from Bontang, Indonesia, CC BY 2.0, via Wikimedia Commons
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