India: Bulk coal vessel freights drop w-o-w as pre-monsoon restocking ends

• Improvement in Indonesia-India cargo movements seen
  
  
• Limited enquiries amid lower coal demand in domestic market
  
  

Coal vessel freight rates have shown a downtrend this week. The drop in coal stocks can be attributed to the restocking process coming to an end ahead of the monsoons expected to arrive by the first week of June 2024. This is likely to affect imports, and the end of summer signals reduced power demand, further influencing coal stock levels.

Route specifications:

• Australia-India freight rates edge down 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), down by $1/t w-o-w on 30 May. Demand for cargoes in East Australia was not strong enough to boost rates significantly, especially with most cargoes scheduled for loading dates later in June. A couple of mills like SAIL and RINL were heard to have put enquiries for booking.
  
  
• South Africa-India freights drop w-o-w: Freight rates for coal shipments from the Richards Bay Coal Terminal (RBCT) to Paradip are currently at around $18/t, a decrease of $0.55/t w-o-w. Limited enquiries were seen this week. Notably, declining sponge iron prices amidst slower long steel demand amidst ongoing elections have enabled price-sensitive buyers like India to increase their purchases of South African thermal coal.
  
  
• Indonesia to India freights inch up w-o-w: Freight rates for coal shipments from East Kalimantan to Paradip stood at $15.75/t, up $1.15 w-o-w. There was a slight increase in Indonesian coal cargoes, but sentiment remained cautious. As per sources, prior to heavy rainfall in the month of July, coal restocking will be carried out next month.