Weekly recap: Global coal market trends (Week 36, 2024)

India's energy and commodity markets are witnessing significant shifts as major refineries announce pet coke prices for September 2024. Domestically, while imported pet coke prices remained steady w-o-w amid refinery adjustments, met coke prices faced pressure due to weak demand, resulting in a decline in portside South African coal prices. Additionally, Australian coking coal prices plunged w-o-w, and bulk coal vessel freights remain subdued as inquiries dip across the sector.

India: Major refineries announce pet coke prices for Sep'24

Reliance Industries Limited (RIL) has set its pet coke prices for September 2024 at INR 12,663/tonne (t) ($150.78/t), unchanged from the previous month but a 12% drop compared to last year. The company limits market supply, as most of its pet coke production is used in its gasification unit. Meanwhile, Mangalore Refinery and Petrochemicals Limited (MRPL) reduced prices by INR 130/t ($1.55/t) m-o-m for road and rail supply to INR 10,380/t ($123.60/t) and INR 10,080/t ($120.03/t), respectively. Nayara Energy held prices steady at INR 13,063/t ($155.57/t), and Chennai Petroleum Corporation Limited (CPCL) cut road supply prices by INR 100/t ($1.19/t) to INR 13,180/t ($156.98/t).

India: Imported pet coke prices remain steady

After hitting a one-month low last week, imported pet coke prices in India remained stable w-o-w despite refinery adjustments. Prices of 6.5% sulphur pet coke stood at $106-107/t CFR west coast and $108-109/t CFR east coast.

India: Imported met coke offers stay unchanged w-o-w

Met coke offers to India from Indonesia and China held steady this week, with prices at around $250/t FOB from Indonesia and $240/t FOB from China. Weak demand kept prices flat, but a price rise is anticipated once market conditions improve and demand strengthens.

India: Weak demand impacts domestic met coke prices

Domestic met coke prices in India declined this week due to low demand and global market cues. Prices dropped by INR 100/t ($1.19/t) to INR 34,100/t ($405.98/t) exw-Jajpur, while western India saw a decline of INR 500/t ($5.96/t) to INR 30,800/t ($366.82/t) exw-Gandhidham. The monsoon season and weaker Chinese steel demand have led Indian end-users to adopt a wait-and-watch approach. Met coke imports also dropped to 0.33 million tonnes (mnt) in August, with Indonesia being the largest supplier. Competitive import offers and falling Chinese coke prices are further weighing on domestic prices.

India: Portside South African coal prices decline amid weak demand

BigMint's assessment indicated that portside prices of South African thermal coal fell by INR 100-300/t ($1.19-3.57/t) w-o-w. RB2 (5500 GAR) and RB3 (4800 GAR) coal prices were assessed at INR 9,450/t ($112.51/t) and INR 7,600/t ($90.52/t) ex-Gangavaram, respectively. Trades remained subdued due to bid-offer disparities and weak steel demand.

India: Domestic coal prices inch up w-o-w

Domestic coal prices further rose due to the lack of auctions and operational issues at certain mines. BigMint's 4500 GCV coal price increased by INR 100/t ($1.19/t) to INR 5,300/t ($63.10/t), while 5000 GCV coal stood at INR 6,300/t ($75.01/t) exw-Bilaspur. Strong market demand also contributed to the price escalation.

Australia: Coking coal prices plunge w-o-w

Australian coking coal prices corrected downward by $13 w-o-w. A fall in futures, along with demand concerns in China, weighed on offers.

Bulk coal vessel freights remain lacklustre amid lower inquiries

Coal vessel freight rates showed dull sentiments this week amid declining enquiries. In the global market, minimal activity and lower demand resulted in slow trading. As per BigMint's assessment, freight rates from Port Hay Point to Paradip were at $15.6/dry metric tonne (dmt), up by $0.12/t w-o-w. Freight rates from the Richards Bay Coal Terminal (RBCT) to Paradip are currently at around $14.5/t, having inched down by $0.31/t w-o-w.