singapore — Thermal coal miners in South Kalimantan were experiencing loading delays following flooding in the region, sources said Jan. 19, with a state of emergency having been declared on Jan. 15.
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Register NowThe miners produce thermal coal with calorific values from 3,000-5,200 kcal/kg NAR, the sources said.
"The flood has slowed down the production of coal, creating delay to some shipments," a South Kalimantan miner said. "We have stopped offering to the market amid tightening supply."
A North China-based trader said: "A trader in China is seeking a prompt cargo of coal as loading got delayed."
Miners in East Kalimantan were also experiencing loading delays and slower production, with Multi Hara Utama and Insani Baraperkasahas having declared force majeure on Jan. 5 and Jan. 17, respectively, sources said.
That has led to expectations of a supply crunch, buoying the Indonesian coal market at a time of solid demand from China.
"The market is on fire now," one China-based trader said, while others said the rise in prices would reverse as weather conditions improved.
Asia-Pacific Supramax and Panamax markets remained resilient despite Indonesian coal cargo laycans being delayed, shipping sources said.