India: Bulk coal vessel freight rates decline in absence of firm inquiries

Coal vessel freight rates have declined this week amid absence of firm inquiries. Coal import inquiries have lowered due to upcoming monsoon season and sufficient stocks are available in the domestic market. Lacklustre activities were witnessed due to stability in port stocks, fall in sponge prices and arrival of monsoon.

However, few inquiries were seen in the market for Indonesia-India routes, but some shipowners are cautious due to monsoon season, a shipbroker stated.

Route specifications:

Australia-India freight rates fall w-o-w: Freight rates from Australia decreased w-o-w for India. As per BigMint's assessment, coal freight rates from port Hay Point to Paradip were recorded at $17.59/tonne (t), down by $0.37/t. As per sources, SAIL have inquired for Panamax vessel from Port Haypoint to Vizag port for early July shipments. Fall in steel prices owing to onset of monsoon, arrival of flat import cargoes have kept coking coal inquiries slow, highlighted sources.

South Africa-India freights remain stable w-o-w: Freight rates for coal shipments from the Richards Bay Coal Terminal (RBCT) to Paradip are currently at around $17.37/t, stable w-o-w. As coal supply constraints are anticipated due to the train derailment, disruptions will likely be offset by reduced demand and lower purchasing activity from major Asian countries.

Indonesia to India freights inch down w-o-w: Freight rates for coal shipments from East Kalimantan to Paradip stood at $12.7/t, inching down by $0.25/t w-o-w. Coal import enquiries have been slowed down this week, buyers are leveraging better domestic production and supply to negotiate with sellers. Although inquiries are present, bid levels remain low compared to premium offers. Buyers are not rushing to book cargoes, opting to wait for prices to potentially decrease further.