Reuters reported that a “sharply lower rupee” has pushed Indian buyers to reduce shipments from Indonesia, a top thermal coal exporter. They are also looking to renegotiate contracts with the country. That has caused Indonesian suppliers to either look for other buyers or push their cargo on the spot market.
As quoted in the market news:
Several Indonesian companies have scrambled to find new buyers on the spot market after deals with Indian buyers fell through, the Indonesian Coal Mining Association (ICMA) said.
‘Some buyers have cancelled contracts or sought to renegotiate contracts, because now it’s actually cheaper for them than fulfilling their obligations,’ ICMA commercial committee chairman Pandu Sjahrir told Reuters.
‘Sellers have been dumping into the market. They have to choose – should I take (buyers) to court or renegotiate with them or just sell it in the spot market?’