India: Bulk coal vessel freight rates remain range-bound w-o-w

Coal vessel freight rates have shown mixed trends this week. Vessel freight rates from Australia to India have remained stable; however, freights on the Indonesian and South African routes have fallen.

• Australia-India freight rates remain stable w-o-w: Freight rates from Australian ports fell w-o-w for India. As per BigMint's assessment, coal freight rates from Port Hay Point to Paradip were recorded at $17.5/tonne (t), largely stable. An Indian mill was heard to have fixed a 75,000 t cargo from Abbot Point to Vizag at $18.65/t for laycan 25 June-4 July'24. Australian coking coal prices have recovered by around $8/t today due to a scarcity of coal for July loading, with miners concentrating on increasing production in the final month of their financial year, resulting in lower availability in July due to maintenance activities.
  
  

• South Africa-India freights inch down w-o-w: Freight rates for coal shipments from the Richards Bay Coal Terminal (RBCT) to Paradip are currently at around 17.4/t, a decrease of $0.6/t w-o-w. Limited enquiries were heard this week as the sponge iron and steel market remained volatile amidst declaration of election results in the country, thereby capping trade activities. Notably, domestic sponge iron prices have corrected by around INR 600-700/t since the beginning of this week.
  
  
• Indonesia to India freights inch down: Freight rates for coal shipments from East Kalimantan to Paradip stood at $12.45/t, down $3.3/t w-o-w. Prices have remained more or less stable w-o-w. Coal import enquiries have declined this week amid lower buying interest and sufficient stocks in the market.