-Coking coal prices up $15 post-fire at Anglo American mine
-Indian refineries, except RIL, cut pet coke prices for July
-South African coal portside prices inch down in India
Coking coal prices rise post Anglo fire - Coking coal prices have increased by $15/t after the breakout of a fire at Anglo American's Grosvenor Mine in Queensland. The steelmaking coal mine in Australia has stopped operations following an underground coal gas ignition on 29 June, 2024. For the full year, Grosvenor's contribution is expected to be about 3.5 mnt. Reduced output of 1.2 mnt in H2CY'24 is expected due to a scheduled longwall move. This resulted in an increase in coking coal prices by about $15/t w-o-w. However, any significant long-term impact on prices is considered unlikely.
Indian met coke prices remain stable- India's met coke prices remained stable amid slow trade activity at INR 35,500/t exw Jajpur, with some offers at around INR 35,000/t. Trading activity has decreased due to uncertainties surrounding DGTR import restrictions and the significant surge in coking coal prices. No significant deals were recorded during the week as merchant cokeries held onto offers, awaiting clarity.
Indonesian thermal coal prices remain supported- Indonesian thermal coal portside trade activities into India have remained slow this week, with stable prices for 3400 GAR coal at Navlakhi Port at INR 5,200/t and 4200 GAR coal at Kandla Port at INR 6,300/t. However, prices for 5000 GAR coal at Vizag and Kandla Ports increased. Despite reduced production, demand from major consumers like China and India remains weak. Indian mills have built sufficient stocks leading to low demand, while coastal power plants have stockpiles sufficient for over two weeks.
South African coal portside prices inch down-South African thermal coal portside prices at Indian ports have decreased this week. Prices for RB2 coal at Vizag and Gangavaram were heard at INR 10,100-10,200/t, and RB3 prices ranged from INR 8,100-8,300/t. Indian demand for South African coals remains on the lower side and portside prices are expected to continue trending lower.
Refineries cut pet coke prices for July, RIL an exception-Indian refineries, excluding Reliance Industries Limited (RIL), have cut pet coke prices for July. MRPL decreased its prices by INR 80/t. CPCL reduced its road supply prices by INR 220/t. In contrast, RIL raised its pet coke prices marginally by INR 34/t to INR 12,473/t ($150), supported by stable imported pet coke prices. Imported pet coke prices remained steady, with the monsoon reducing demand in India.
Bulk coal vessel freight rates show mixed trends- Coal vessel freight rates have experienced varied trends due to disruptions caused by adverse weather conditions this week. Importantly, inquiries for coal imports have decreased because there are already sufficient stocks at ports. As per BigMint's assessment, freight rates from Port Hay Point to Paradip were recorded at $16.9/dry metric tonne (dmt), down $0.4/t. Freight rates for coal shipments from the Richards Bay Coal Terminal (RBCT) to Paradip are currently at around $16.7/dmt, stable w-o-w.
