Declining demand from two main Asian buyer viz., China and India has coerced Indonesian miners to prune production .However this has impacted the small miners sitting on the fringes active in spot market.

The squeeze is evident since Chinese and Indian buyers are bidding USD 37 per tonne to USD 38 per tonne FOB for 4,200kcal/kg GAR while sellers are offering at USD 40 per tonne. It has led to many marginal miners shut production on the eve of Lebaran festival holiday.

Main miners have remained unaffected since they are already insulated by quarterly contracts done at higher levels.

Price of bituminous and higher grade sub bituminous thermal coal has improving during the last fortnight it is the lower rank coal producers who are taking the flak.

Source - Strategic Research Institute

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