Weekly recap: Global coal market trends (Week 34, 2024)

The week exhibited mixed trends with thermal coal portside prices in India witnessing stability. However, met coke import offers to India have shown a decline in line with Chinese price cut.

Indian portside thermal coal prices remain unchanged

Portside prices of South African RB2 (5500 GAR) coal in India remained steady at INR 9,650/tonne (t) ex-Gangavaram. Similarly, RB3 (4800 GAR) coal prices at Gangavaram and Vizag ports remained stable at INR 7,700-7,750/t. Transactions were limited due to lower bids from buyers, reflecting subdued market activity.

The Indonesian thermal coal portside market remained stable this week due to weak demand, with trading activities being sluggish and logistical issues at ports, sources informed BigMint. Specifically, prices of 3400 GAR coal at Navlakhi Port stayed steady at INR 5,100/t. Similarly, the price of 4200 GAR coal at Kandla held firm at INR 6,200/t ex-port.

India's met coke import prices drop w-o-w

India's met coke import prices have decreased by about $10/t, now standing at around $250/t FOB for Indonesian coke. Domestic producers are reducing production and opting for imported coke to minimise losses. Prices of imported met coke from China are approximately $240/t FOB.

India: Domestic met coke prices stable amid slow buying activity

Indian domestic met coke prices remained unchanged w-o-w at INR 34,800/t exw Jajpur, with buying activity slowing due to declining imported offers. Merchant cokeries have reduced production in response to low demand, maintaining pressure on prices.

China implements fifth coke price cut as steel market weakens

China's metallurgical coke prices fell by another RMB 50-55/t ($7-7.7/t) on 20 August, marking the fifth price reduction since late July. This latest cut was driven by leading steelmakers in North and East China seeking to reduce raw material costs amid a softening steel market. Current prices for wet-quenching quasi-first-grade met coke in Shanxi range from yuan 1,530-1,630/t, while dry-quenching coke in Shandong stood at yuan 1,935-2,005/t, including VAT.

India: Imported pet coke prices inch down

Imported pet coke prices in India have decreased by $1 w-o-w, with current prices ranging from $107-108/t CFR on the west coast and $108-109/t CFR on the east coast. The decline is driven by reduced demand due to the monsoon season and lower infrastructure activity. Prices are expected to continue to drop in the near term.

Bulk coal vessel freight rates stable amid active trading

Coal vessel freight rates remained stable this week, supported by active trading and steady coal demand. Freight rates on the Australia-India route remained at $16.1/dmt from Port Hay Point to Paradip. Freight rates from South Africa to India held steady at $15.7/t for shipments from Richards Bay Coal Terminal (RBCT) to Paradip. Meanwhile, freight rates from Indonesia to India saw a slight increase of $0.2/t reaching $13.05/t for shipments from East Kalimantan to Paradip. Indian coal port stocks remained stable at 14.64 million tonnes (mnt) during week 33.