India: Bulk coal freight rates fall amid sluggish demand

• Sluggish demand amid sufficient stocks
  
  
• Transportation challenges persist in Indonesian mines
  
  

Coal freight rates have dropped this week because there was not enough demand for it. Indian companies are not buying coal despite decline in coal stocks at Indian ports. This can be attributed to subdued demand, as well as an increase in domestic production. Moreover, lacklustre activities were noted in the Indian Ocean amid Eid holidays.

Route-wise details:

• South Africa to India freights inch down w-o-w: Freight rates for coal shipments from the Richards Bay Coal Terminal to Paradip, India, are currently at around $16.65/tonne (t), a fall of $1.5/t w-o-w on 11 April 2024, as per BigMint's assessment. Limited trading activities was witnessed due to sufficient stock available at the ports and ramp up in domestic production. Meanwhile, Coal India Limited ramped up production prior to the summer season to counter balance production losses during the monsoon period.
  
  
• Australia to India freight rates decrease w-o-w: Freight rates from Australian ports dropped w-o-w for Indian as well as for Chinese ports. As per BigMint's assessment, coal freight rates from Port HayPoint, Australia to Paradip, India were recorded at $16.88/t, inching down by $0.77/t w-o-w today. Oversupplied market and weak demand from major buyers like India and China have lowered trade activities. In India, consumers had already stocked up for the monsoon season, while Chinese celebrations for Qingming festival kept buyers on the sidelines.
  
  
• Indonesia to India freights fall w-o-w: Freight rates of coal shipments from East Kalimantan to Paradip stood at $11.95/t, down by $0.25/t w-o-w today. Demand in India for Indonesian coal remained weak despite sufficient domestic stocks. Notably, transportation challenges persist in certain mines of East Kalimantan due to decreased water levels in the river.