Weekly recap: Global coal market trends (week 39, 2024)

• Subdued demand for thermal coal persists in India
  
  
• Chinese stimulus news boosts coking coal prices
  
  
• Imported pet coke prices stable amid weak demand
  
  

Indonesian thermal coal portside prices remained largely stable this week. In contrast, South African thermal coal prices dipped due to weak demand and high inventories. In India, domestic coal prices held steady amid tight availability, though overall demand remained subdued due to the monsoon. This pressure extended to the domestic met coke market, where prices edged down despite global price hikes. Coking coal prices rose sharply towards the weekend, driven by the Chinese stimulus announcement.

Indonesian thermal coal portside prices remain stable in India

Indonesian thermal coal prices remained largely steady in India this week. At the Navlakhi Port, prices of 3400 GAR coal edged up by INR 50/tonne (t) to INR 4,550/t. Similarly, at Kandla and Vizag, 4200 GAR coal rose INR 50/t to INR 5,950/t and INR 5,850/t, respectively. Demand remained subdued in India amid high inventories and low power consumption due to the ongoing monsoon season.

South African thermal coal prices dip in India amid weak demand

Portside prices of South African thermal coal dropped by INR 50/t this week. RB2 (5500 GAR) and RB3 (4800 GAR) coal were recorded at INR 9,400/t and INR 7,550/t ex-Gangavaram, respectively. Around 10,000 t of RB2 were sold at INR 9,200/t at Gopalpur Port, with some offers dipping below INR 9,200/t, reflecting weaker demand in the market. However, with the hike in semi-finish and sponge prices, traders are planning to hike offers.

India's imported met coke trades surge on price rise expectations

Indian mills booked two 40,000 t met coke shipments from Indonesia at $245/t FOB for October and November. Offers rose this week to $235/t FOB China, up from $225/t last week, while Indonesian prices hit $240-245/t. Chinese met coke producers initiated a second round of price hikes, with wet quenched coke rising by RMB 50/t ($7). Reduced Indonesian production also drove up import demand, with Indian mills pre-booking to hedge against further price hikes.

Chinese steel mills accept second met coke price hike amid rising demand

Chinese steel mills accepted a second met coke price hike, driven by increased demand for restocking ahead of the National Day holidays and rising steel prices. Mills in Hebei, Shandong, and Tianjin raised prices of wet-quenching coke by RMB 50/t and dry-quenching coke by RMB 55/t, effective 26 September 2024. Total hikes for September have now reached RMB 100-110/t. Despite low inventories and smooth sales, coke plants continue to operate at break-even levels, prompting discussions of a third price hike before the holiday.