Weekly recap: Global coal market trends (Week 37, 2024)
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In India, weakening market conditions have led to a decline in coal prices, with Indonesian coal portside prices falling and South African thermal coal prices dropping due to subdued demand. Additionally, domestic met coke prices have hit a four-month low, while both imported and domestic pet coke prices have also declined reflecting overall weak market sentiment.
Indonesian coal portside prices in India fall as market weakens
Indonesian thermal coal portside prices declined due to high stock levels. At Navlakhi Port, 3400 GAR coal dropped by INR 100/t to INR 4,900/t, while 4200 GAR coal at Kandla fell by INR 200/t to INR 5,900/t. Prices of 5000 GAR coal at Kandla stayed stable at INR 8,000/t. Indonesian indexed prices also saw slight changes, with high-CV coal dipping to $92.21/t. Meanwhile, Indonesian miners are looking to secure new contracts for the coming year, but market activity has been muted as end-user participation remained lower than usual following the completion of September shipments.
India: South African thermal coal prices drop
Portside prices of South African thermal coal are under pressure, with RB2 (5500 GAR) at INR 9,400/t and RB3 (4800 GAR) at INR 7,600/t ex-Gangavaram. Some grades saw a decline of INR 200/t since the start of the week. Low demand and reduced sponge iron prices have led to subdued buying activity, contributing to the ongoing price slump.
India's met coke prices hit 4-month low
India's domestic met coke prices dropped by INR 300-600/t week-on-week, reaching a four-month low of INR 33,500/t exw-Jajpur. Weak market demand and declining import offers are driving the drop. Hebei steelmakers in China also slashed met coke prices for the eighth time. Additionally, Australian coking coal prices. The ongoing monsoon season and competitive import offers continue to weigh heavily on domestic prices.
India's imported coke prices down $10-15/t
Met coke offers to India dropped by $10-15/t, now priced at $235/t FOB from Indonesia and $225/t FOB from China. The market remains uncertain with fewer CIF-based transactions due to unclear import quotas. With lower import prices, several merchant coke plants are opting for imports rather than domestic production, capitalizing on the competitive rates.
Hebei steelmakers initiate 8th round of coke price cuts
Hebei steelmakers, including those in Tangshan, implemented their eighth round of met coke price cuts. As of September 10, 2024, wet quenched met coke prices dropped by RMB 50/t ($7), and dry quenched coke saw a reduction of RMB 55/t. Current met coke prices in Tangshan stand at RMB 1,610/t ($226.5/t), reflecting the ongoing downward trend in the region.
India's imported pet coke prices decline
Imported pet coke prices in India saw a decline of up to $1 per tonne this week. Prices ranged from $105-106/t CFR on the west coast and $107-108/t CFR on the east coast. Weak market sentiments continue to exert pressure on prices, as reported by market sources.
Indian Oil lowers fuel-grade pet coke prices for September
Indian Oil Corporation Limited (IOCL) has reduced fuel-grade pet coke prices for September deliveries. Prices at Koyali refinery dropped by INR 380/t to INR 10,980/t for road delivery, down from INR 11,360/t.
India: Coal vessel freight rates stable
Coal vessel freight rates remained stable this week due to subdued inquiries and weak demand at ports. Freight from Australia to Paradip fell slightly to $15.5/dmt, while rates from South Africa (RBCT) to Paradip held steady at $14.5/t. Similarly, Indonesia-India freight rates remained unchanged at $12.4/t. The slow trading environment and a drop in thermal coal stocks at Indian ports, which fell 4.19% to 13.37 million tonnes in week 36 of 2024, continue to weigh on freight movements.
