India: Bulk coal freight rates fall in key routes except from Indonesia

• Sufficient stock at ports, India's higher coal production limits import inquiries
  
  
• Baltimore bridge collapse disrupts coal shipments from the US
  
  

Coal freight rates anticipate mixed trend this week. Lower buying interest from market participants as in the domestic market, a sufficient quantity of stocks are available. However, prior to monsoon, and to avoid production loss some power plants have shown some pockets of demand.

Route-wise details:

• South Africa-to-India freights fall w-o-w: Freight rates for coal shipments from the Richards Bay Coal Terminal to Krishnapatnam, India, are currently at around $19.65/tonne (t), a drop of $1.85/t w-o-w. As per sources, the market has softened. Increased domestic coal production added to the subdued market, resulting in fewer enquiries throughout the week. Notably, CIL's coal production rose by 10.5% y-o-y to 685 million tonnes (mnt) in financial year 2024 (FY24) (till February, 2024). Coal India aims to increase output by 7% to 838 mnt for FY25.
  
  
• Indonesia-to-India freights inch up w-o-w: Freight rates for coal shipments from East Kalimantan to Paradip stood at $12.7/t, rise by $0.2/t w-o-w. During this period, commence of summer led some imports necessary to stock up for domestic mines to balance the production loss which may occur in monsoon. Demand from India largely remained low, with only a few power plants occasionally purchasing Indonesian mid-CV coal.
  
  
• Australia-to-India freight rates decline w-o-w: Freight rates from Australian ports dropped w-o-w for Indian as well as for Chinese ports. Notably, Hay Point Port Berth 1 is still under maintenance shutdown till 14 April. Whereas, a vessel is booked for the shipment on mid-April dates from Australia to India routes. Meanwhile, recent drop in Australian coking coal prices have led to demand arising from some Indian end-users, but many chooses to approach offers cautiously.SAIL booked a Panamax vessel for 75,000 t of metallurgical coal from Hay Point Port, Australia to Vizag and Haldia at a rate of around $20.90/t. The shipment is scheduled for 16-25 April, sources informed.
  
  
• Baltimore bridge collapse disrupts coal shipments : The collapse of a major Baltimore bridge in the US on 26 March, resulted in shut down of the coal exports port for as many as six weeks and blocked the transport of coal. This poses a threat to global energy supply chains recovering from Covid-related slowdowns. Though global price impacted coal from the US, with last fiscal year's forecast to be minimal, India, a major thermal coal recipient from Baltimore for electricity generation, could face significant disruptions. India imports around 6% of it imports reaching nearly 14 mnt, split between thermal and metallurgical coal.