Weekly recap: Global coal market trends (Week 32, 2024)

• Thermal coal prices weighed down by falling sponge & steel prices
  
  
• Met coke trades remain slow on awaited clarity on quota restrictions, dull demand
  
  
• Imported pet coke offers remain stable w-o-w
  
  

Portside South African coal prices under pressure on falling sponge iron prices - BigMint's assessment for South African coal, RB2, portside prices remained stable w-o-w at INR 9,650/t ex Gangavaram. Prices of RB3 (4800 GAR) at Gangavaram and and Vizag ports were recorded at INR 7,700-7,750/t, unchanged w-o-w. Buying inquiries from India remained weak during the week amid rains and falling steel prices.

Indonesian thermal coal portside prices inch down as demand continues to wane - The Indonesian thermal coal portside prices reflected subdued market sentiments this week. The market is witnessing better demand from China and lacklustre demand from India in the ongoing monsoon season. Notably, prices of 3400 GAR at Navlakhi Port fell by INR 100/t at INR 5,100/tonne (t). Prices of the 4200 GAR at Kandla stood at INR 6,300/t ex-port. Meanwhile, prices of 5000 GAR at both Vizag and Kandla edged down during the week.

India's domestic met coke market under pressure as demand slows - India's domestic met coke market is under pressure due to falling met coal prices and weak demand. Domestic met coke prices remained stable, with Jajpur at INR 34,800/t, western region at INR 32,700/t, and southern region at INR 30,000-31,000/t.

Imported met coke prices in India remain under pressure as trade slows - Imported met coke prices in India continue to face pressure due to sluggish trade, with price indications at $285-290/t CFR India for lower quality coke and $305-315/t for higher quality. Steel mills are hesitant to commit due to unresolved quota restrictions. India's met coke imports dropped sharply by 42% in July 2024 to 0.37 million tonnes, down from 0.64 million tonnes in June.

CPCL increases pet coke prices by INR 140/t for August 2024 - Chennai Petroleum Corporation Limited (CPCL) has raised its pet coke prices for road supply by INR 140/t, bringing the new price to INR 13,280/t for August 2024. With an average monthly dispatch of 40,000-45,000 tonnes, CPCL primarily supplies to Tamil Nadu and Andhra Pradesh. It's worth noting that CPCL does not offer a rake loading facility for pet coke distribution.

Imported pet coke prices in India remain stable - Prices of imported pet coke (6.5% S) have remained stable in the international market, with offers to India holding steady. Current prices range from $107-109/t CFR on the west coast and $110-111/t CFR on the east coast. The market outlook suggests that prices may remain under pressure as domestic consumption of pet coke is expected to stay subdued during the monsoon season due to weaker construction activities.

Bulk coal vessel freight rates to India fall w-o-w - Coal vessel freight rates continued to downtrend this week amid oversupply of ships. Freight rates from Australia inched down this week. As per BigMint's assessment, freight rates from Port Hay Point to Paradip were recorded at $16.14/dry metric tonne (dmt), a decrease of $0.36/t w-o-w. Freight rates from the Richards Bay Coal Terminal (RBCT) to Paradip are currently at around $15.7/dmt, down by $0.5/t w-o-w.