DAILY: Indonesian thermal coal upside capped despite supply tightness

Indonesian thermal coal prices have remained largely stable for more than a week following persistent rallies since early April, as China's cautious procurement strategy capped further gains. However, sources expect persistent supply constraints could lend renewed support to prices later this month.

Mysteel assessed Indonesian 3,800 kcal/kg NAR thermal coal at $66.5/tonne FOB Kalimantan on May 19, unchanged since May 11. The stabilization followed a five-week uptrend totalling $6.5/t from the $60/t seen on April 3. The current pause in the rally mainly reflects growing resistance from Chinese buyers toward high-priced imported