India: Coal vessel freight rates remain largely stable on lower inquiries
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- Weak demand despite drop in portside stock
- Slow trading limits vessel movements
Coal freight rates remained largely stable on key routes this week due to lower inquiries. Coal imports have declined due to lower demand at portside, and falling bunker prices have led to lacklustre trading. Limited trading has kept the movement of ships minimal, resulting in subdued market sentiment.
Notably, thermal coal stocks at Indian ports fell by 4.19% w-o-w to 13.37 million tonnes (mnt) in week 36 of calendar year 2024 (CY'24), down from 13.96 mnt in week 35, according to data compiled by BigMint.
Route specifications:
- Australia-India freight rates inch down w-o-w: Freight rates from Australia inched down this week. As per BigMint's assessment, freight rates from Port Hay Point to Paradip were recorded at $15.5/dry metric tonne (dmt), down by 0.1/t w-o-w.
- South Africa-India freight rates stable w-o-w: Freight rates from the Richards Bay Coal Terminal (RBCT) to Paradip stood at $14.5/t, stable w-o-w. Indian buyers have limited seeking cargoes as demand in steel sector has fallen resulting in lower inquiries for the route.
- Indonesia-India freight rates stable w-o-w: Freight rates for coal shipments from East Kalimantan to Paradip stood at $12.4/t, stable w-o-w. Lacklustre trading due to lower demand at portside weighed on freights.