Weekly recap: Global coal market trends (Week 26, 2024)

• Imported South African coal portside prices largely stable
  
  
• Indian met coke prices stable, import bookings remain slow
  
  

Imported South African coal portside prices in India stable w-o-w - Prices of RB2 (5500 NAR) coal in the Asian thermal coal market remained stable w-o-w at INR 10,100/tonne (t) ex-Gangavaram. South African coal prices are expected to remain rangebound on weaker buying interest. In the domestic market, Indian buying has remained subdued on high port stocks and onset of monsoon. Sponge iron (P-DRI) prices have shown a recovery of INR 600/t in central India since mid of this week as prices had bottomed out and thin margins were seen.

Indonesian thermal coal portside prices range-bound- Portside trade activities in Indonesian thermal coal in India continued to remain subdued this week. Prices of the 3400 GAR coal at Navlakhi Port edged up to INR 5,200/t. Demand remained on the lower side also because of sufficient domestic production. Coal stocks at Indian power plants were heard to be sufficiently available.

Indian met coke prices stable, import bookings remain slow-Indian met coke prices have held steady at INR 35,500/tonne (t) exw-Jajpur. Uncertainty surrounding Directorate General of Trade Remedies (DGTR) import restrictions has tempered market movements. Meanwhile, Chinese imported coke prices have declined by $13/t w-o-w. However, import cargo offerings for July remained limited amidst awaited clarity on restrictions.

Chinese coke prices rise-Some Chinese mills have announced their acceptance of a price hike of RMB 50-55/t, one week after it was proposed by cokeries due to low inventory. As blast furnaces gradually resumed operations, steel mills maintained high activity levels, resulting in increased molten iron output. The ongoing depletion of existing coke stocks led mills low on inventory to purchase more of this crucial steel-making material.

Australian coking coal prices inch down-Australian premium hard coking coal prices edged down w-o-w by 2% w-o-w to $234/t FOB and $250.9/ t CNF on 29th June, 2024. Prices fell on ample cargo supplies from Australia and comparatively slow and stable demand. This price drop will aid countries facing margin declines in restocking on their coking coal supplies. Sufficient supplies of coking coal have been available in the market in India as well as China which has rendered a fall in offer levels by the sellers. Mills are not buying forward cargoes due to sufficient port stock and are only doing need-based buying.

India's imported pet coke prices unchanged w-o-w-Prices of imported pet coke (S6.5) in the international market continued to remain unchanged w-o-w in the range of $106-107/t CFR west coast India and $108-109/t CFR east coast India. Price levels have fallen close to a 1-year low, as per BigMint data. Reduced demand on onset of monsoon has inhibited price change.

Indian coal vessel freight rates decline except for Indonesia route-Freight rates for bulk coal vessels to India have declined across most routes from South Africa and Australia due to reduced inquiries amidst the upcoming monsoon season and ample port stocks. However, rates for Indonesia-India routes saw a slight increase, albeit with caution from ship owners due to seasonal factors.