China Coal Buyers Said to Seek Cargo Deferrals Amid Supply Surge
Thermal-coal buyers in China are negotiating to defer imports amid a surge in stockpiles, according to three Indonesian sellers of the fuel.
Traders are asking to delay shipments of Indonesian power- station coal for as many as two weeks as stockpiles in China’s main ports are sufficient, said two of the people who declined to be identified because the information is confidential. One buyer asked to reschedule a 50,000-ton cargo for June delivery, according to one of the people.
The Financial Times reported today that buyers of iron ore and thermal coal are asking traders to delay shipments with some defaulting on their contracts, citing unidentified traders.
Chinese thermal coal at the nation’s biggest port for delivering the fuel fell for a second week as stockpiles rose at the fastest pace in six months.
Coal inventories at Qinhuangdao, which delivers half the nation’s seaborne supplies, rose 13 percent to 6.46 million tons yesterday from a week earlier, according to the China Coal Transport and Distribution Association. That’s the biggest percentage increase since Nov. 20, according to data compiled by Bloomberg.
Coal with a benchmark energy value of 5,500 kilocalories per kilogram at Qinhuangdao slid 0.6 percent to a range of 770 yuan ($122) to 780 yuan a ton, according to data from the association.
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