India: Bulk coal vessel freight rates show mixed trends in absence of firm inquiries

Coal vessel freight rates have experienced varied trends due to disruptions caused by adverse weather conditions this week. Importantly, inquiries for coal imports have decreased because there is already sufficient stocks at ports. The ongoing monsoon season has also contributed to the pressure on freight rates.

Furthermore, the global market has experienced subdued demand and a lack of inquiries, partly due to the monsoon affecting shipping activities and industrial operations, shipowners informed BigMint, pointing to the broader trends impacting the coal shipping industry.

Coal stocks across 21 Indian ports remained stable as of 1 July 2024, according to BigMint data. During week 26 of calendar year 2024 (CY'24), thermal coal stocks at Indian ports stood at 16.27 million tonnes (mnt) compared to 16.26 mnt in week 25.

Route specifications:

• Australia-India freight rates fall w-o-w: Freight rates from Australia decreased. As per BigMint's assessment, freight rates from Port Hay Point to Paradip were recorded at $16.9/dry metric tonne (dmt), down by $0.4/tonne (t). However, Australian coking coal prices are heading north driven by uncertainty surrounding the resumption of Anglo American's Grosvenor mine. Additionally, deals for August-loading cargoes were concluded at higher levels amid supply concerns, with awaited clarity over the delivery of July laycan cargoes by Anglo and unexpected rains in Queensland.
  
  
• South Africa-India freights stable w-o-w: Freight rates for coal shipments from the Richards Bay Coal Terminal (RBCT) to Paradip are currently at around $16.7/dmt, stable w-o-w. South African coal prices remained stable on lower buying interest. In the domestic market, Indian buyers have remained lacklusture due to high port stocks and the onset of monsoons. Also, volatility in sponge iron and weaker steel prices have kept imported coal bookings on the lower side.
  
  
• Indonesia-to-India freights inch down w-o-w: Freight rates for coal shipments from East Kalimantan to Paradip stood at $13.1/t, inching down by $0.15/t w-o-w. Meanwhile, it seems like the coastal power plants in India took preemptive measures by stocking up on imported supplies before the monsoon arrived. This foresight was likely due to anticipated transportation challenges during the rainy season. Furthermore, industrial demand decreased because the rains triggered interruptions in various infrastructure projects.