Indonesian steam coal remains one of the most competitive thermal fuels for Vietnam’s power, cement and industrial sectors. With direct mine relationships in South and East Kalimantan, buyers can secure consistent quality at attractive FOB and CIF pricing. This guide explains what to look for when sourcing Indonesian steam coal for export to Vietnam.
Common Indonesian Steam Coal Grades
Indonesian thermal coal is typically traded by its Gross As Received (GAR) calorific value. The most widely shipped grades to Vietnam are:
- GAR 4200 — a high-moisture, low-ash sub-bituminous coal ideal for blending and CFB boilers.
- GAR 4700 — a balanced mid-grade with lower moisture and higher energy density.
- GAR 5000 — a premium steam coal for utilities requiring higher calorific value.
Key Specifications to Confirm
Before signing a contract, always verify the full specification sheet, including total moisture, ash content, total sulfur, volatile matter and size (0–50mm). Reputable suppliers provide a proximate and ultimate analysis and agree rejection limits in the contract.
Pricing and Incoterms
Indonesian coal is commonly sold on FOB Mother Vessel, CIF or CFR ASWP Vietnam terms. FOB suits buyers with their own chartering capability, while CIF/CFR shifts freight arrangement to the seller. Pricing usually references the Indonesian Coal Index (ICI) adjusted for calorific value.
Loading and Delivery
Cargoes are loaded at Kalimantan anchorages via barge-to-vessel transfer using floating cranes. Typical parcel sizes range from 30,000 to 65,000 MT, with a transit time of 5–8 days to Hai Phong, Cam Pha or Ho Chi Minh City.
Why Independent Surveying Matters
Independent surveyors such as SGS or Intertek verify quality and quantity at the load port, protecting both parties. A Certificate of Analysis (COA) and Certificate of Origin (COO) should accompany every shipment for smooth customs clearance and Letter of Credit settlement.
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