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COALspot.com: A rally in thermal coal prices over the past few months, after years of decline, is still continuing and it is expected to rally at least until early next year.
The world’s coal industry has operated under stressful conditions since early 2012 until April 2016 due to a combination of oversupply and sinking demand. After several years of coma, coal has been a surprise positive performer this year, supported by China’s new policy on its domestic coal miners. Today the coal is the top attractive and the hottest commodity in the world.
Now coal prices are going vertical, continuing its rally since April. The price increase is almost on a daily basis and producers were kept revising their prices upwards on a regular basis for Q4’16 deliveries as well as Q1’17 supplies. Coal miners should enjoy another quarter of solid gains in coal prices.
The end-users of coal might face more tougher quarters, as prices continue to rise strongly in most of the coal producing counties.
The coal buyers were almost panic to see the current price trends and trying to secure the coal for Q4’16 deliveries at the best level.
Average CS 5000 GAR coal index (Indonesian origin) rose 5.82 % week over week, shows CS (i) Coal Index weekly closing figures.
The CS 57 (5700 GAR coal) weekly index was also increased 1.93 % percent week-over-week this past week. The weekly index was rose 7.51% month over month, average monthly index up 6.42%.
The CS (i) Coal index is newly established an independent coal benchmark forecast for Indonesian particular coal types. The CS (i) Coal indices are generated through a Technology aided system, based on COALspot’s own proprietary algorithm requiring minimal human involvement. Therefore, these can be considered as a set of highly transparent & realistic indices for the Indonesian coals of 5700, 5000, 4200 and 3800 GAR grades.
CS (i) coal indices are designed to act as independent coal forecaster for Indonesian coal, identify market trends and serve as a benchmark for decision makers (for active coal producers, Traders and end-users) as well as helping market players to optimize trading and investment strategies.
Technology Aided CS (i) Coal indices are produced in accordance with the strict, pre-defined and fully transparent methodology and delivered via COALspot.com’s online platform through the inputs provided by panelists comprising consumers, producers and traders of Indonesian coal on a real-time basis during Indonesian office hours.
The coal market has been oversupplied for years which dragged prices down. However the recent move by the Chinese government, the thermal coal prices started to rise since April. Many analysts expect thermal prices to keep gaining for the rest of this year and possibly into Q1 next year.
The CS 42 (4200 GAR) Index increased by 2.50% week over week on 30 September 2016, while CS 38 Index which is representing 3800 GAR coal of Indonesian origin was rose 3.60% for the same period.
Year-On-Year (25 September 2015 – 30 September 2016)
CS 38 Coal Index up 6.85%
CS 42 Coal Index up 22.67%
CS 50 Coal Index up 17.37%
CS 57 Coal Index up 11.70%
Year-To-Date (8 Jan – 30 September 2016)
CS 38 Coal Index up 19.03%
CS 42 Coal Index up 29.81%
CS 50 Coal Index up 22.39%
CS 57 Coal Index up 15.30%
CS 38 - TM 40%, Ash 5% Max, Sulphur 0.4% Max and Calorific Value (GAR) 3,800 Kcal/kg
CS 42 - TM 35%, Ash 6% Max, Sulphur 0.8% Max and Calorific Value (GAR) 4,200Kcal/kg
CS 50 - TM 26%, Ash 7% Max, Sulphur 0.8% Max and Calorific Value (GAR) 5,000 Kcal/kg
CS 57 - TM 18%, Ash 12% Max, Sulphur 1.0% Max and Calorific Value (GAR) 5,700 Kcal/kg
(All parameters are in ARB basis)
CS (i) coal index is also publishing real-time and daily indices to use as a market reference. To access* the CS (i) coal index please
click here (or send a mail to subscribe.cs @ coalspot.com).
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