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Wednesday, 22 July 09
TAIPOWER RECEIVES 37 OFFERS IN TENDERS


State utility Taiwan Power has received offers for 37 panamax cargoes of bituminous and sub-bituminous coal in two tenders involving 12 panamax shipments, industry sources said Wednesday.

In tender TPC9805 for 490,000 mt of bituminous with a minimum heating value of 5,500 kcal/kg GAR, Taipower received bids for 13 panamax shipments of Indonesian coal from Glencore, Right Link, Banpu and Flame Trading.

In tender TPC9801C-GS for 350,000 mt of sub-bituminous coal with a minimum heating value of 5,000 kcal/kg GAR,

Taipower received offers for 24 panamax shipments. Taipower has opened the technical proposals for review and is expected to open the price proposals this week or early next week.

Given the recent spike in Newcastle spot prices, winning bids in the bituminous coal tender are expected to be in the high-$60s range, basis 6,322 kcal/kg GAR, or higher than the price which the utility awarded in a previous tender. In early July, Taipower awarded spot contracts for two panamax cargoes to Straits Global at around $66/mt, basis 6,322 kcal/kg GAR. Straits was said then to have submitted offers for Indonesian coals with a heating value of 5,500 kcal/kg

Taipower is expected to negotiate in a bid to obtain prices of under $50/mt FOB, basis 5,000 kcal/kg GAR, in the sub-bituminous coal tender which involved general specification coal, an industry source said.

One source in Taipei said Taipower expects to close sub-bituminous spot deals at relatively lower prices because the specifications involved in the tender are less stringent, accounting for the relatively high number of submitted offers.



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