India: Bulk coal vessel freights edge down w-o-w except from Indonesia
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Coal vessel freight rates have exhibited mixed trends this week. There is no shortage of cargoes in the market currently and no significant surge in demand has been seen. This balanced scenario indicates that market movements will likely be influenced by future demand trends, especially in the Chinese market. In addition, subdued demand globally amid weak sentiments and a drop in prices have resulted in a decline in stocks at Indian ports.
Coal stocks across 21 Indian ports decreased as of 10 July 2024, according to BigMint data. During week 27 of calendar year 2024 (CY'24), thermal coal stocks at Indian ports stood at 15.30 million tonnes (mnt) compared to 16.27 mnt in week 26.
Route specifications:
- Australia-India freight rates inch down w-o-w: Freight rates from Australia declined. As per BigMint's assessment, freight rates from Port Hay Point to Paradip were recorded at $16.7/dry metric tonne (dmt), down by $0.2/tonne (t) w-o-w. However, some inquiries are in the market, which are still under negotiation. As per sources, the inquiries are for end July and early August.
- 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 $16.4/dmt, down $0.3/t w-o-w. Demand for South African mid-calorific value (CV) coal decreased due to a slowdown in the sponge iron sector owing to subdued finished steel demand. Moreover, uninterrupted rainfall in several regions of the country has put a stop to various infrastructure projects, resulting in reduced production of steel and other construction materials.
- Indonesia-India freights remain stable w-o-w: Freight rates for coal shipments from East Kalimantan to Paradip stood at $13.15/dmt, remain largely stable w-o-w. Prices in the Asian thermal coal market have not increased primarily because seaborne coal demand from India and China has been low even as supplies from Indonesia increased post weather disruptions earlier this year. A shipbroker stated, lesser cargo movements have been witnessed in the Indonesia-India route.
