India: Coal vessel freight rates drop w-o-w on weak demand
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- Lower buying interest ahead of festive holidays
- Lack of inquiries pressurising freights
India's coal vessel freights dropped this week due to weak demand. Indian buyers showed sluggish interest due to the approaching Diwali festival next week, resulting in limited trading activities. As per sources, inventory levels at the portside are down and coal shipments are scheduled for the first half of November thereby keeping less fixtures this week.
However, thermal or non-coking coal stocks at Indian ports rose marginally by 2.3% to 12.75 million tonnes (mnt) in week 42 from 12.47 mnt in week 41, according to BigMint's data.
Route specifications:
- Australia-India freights inch down w-o-w: Freights from Australia inched down by $0.62/t w-o-w; rates for Hay Point Port to Paradip stood at $15.28/dry metric tonne (dmt), as per BigMint's assessment. Absence of fixtures were seen for the route due to thin trading activities and lacklustre demand.
- South Africa-India freights drop w-o-w: Freights from the Richards Bay Coal Terminal (RBCT) to Paradip stood at $14.16/t, down by $0.72/t w-o-w. BigMint learned from market participants that the approaching festive holidays and bid offer disparity have weighed on transactions, which are expected to improve in the coming weeks for November shipment.
- Indonesia-India freights fall w-o-w: Freights for coal shipments from East Kalimantan to Paradip stood at $12.3/t, down by $0.75/t w-o-w. As per sources, lack of fresh fixtures and bid-offer disparity have put pressure on freights.
