Weekly recap: Global coal market trends (Week 50, 2024)
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India's portside thermal coal prices remained under pressure this week due to high stock levels and sluggish trading activity. In the Chinese market, met coke prices dropped by RMB 50-55/t amid weak demand. Meanwhile, Indian Oil Corporation Limited (IOCL) raised domestic pet coke prices, even as imported offers saw a slight decline. Additionally, coal freight rates in India fell further, reflecting weak demand and limited movement.
India: Indonesian thermal coal prices drop
Indian portside prices for Indonesian thermal coal saw a decline this week, driven by subdued demand and high stock availability. At Navlakhi, 3400 GAR coal prices fell by INR 50/t to INR 4,700/t, while at Vizag, 4200 GAR coal dipped INR 100/t to INR 5,750/t. High-CV (5800 GAR) coal indexed prices dropped to $93.30/t FOB, reflecting minimal buyer urgency amid cautious market sentiment.
India: Portside thermal coal prices remain under pressure
India's portside prices of South African thermal coal showed mixed trends w-o-w, under pressure from elevated stocks and slow trades due to lower capacity utilisation of sponge iron players. RB2 (5500 NAR) fell slightly by INR 50-100/t to INR 9,400/t. Thermal coal stocks at Indian ports increased marginally by 2% to 13.00 million tonnes (mnt) in week 49 from 12.74 mnt in week 48, according to BigMint's data.
India's domestic coal prices fell slightly this week, as assessed by BigMint, with 4500 GCV coal at INR 4,950/t and 5000 GCV coal at INR 6,400/t exw-Bilaspur, both down by INR 50/t w-o-w.
India: Met coke market slows as domestic prices decline, import activity stalls
Domestic met coke prices in India dropped this week, driven by limited trades and subdued sentiment in the steel market. Blast furnace grade prices at Jajpur fell by INR 1,400/t to INR 31,300/t, while prices in Gandhidham decreased by INR 1,000/t to INR 28,400/t. Weak demand and falling Chinese coke prices have added pressure, though limited supply may provide some support.
Meanwhile, the imported met coke market in India saw no trades after a period of active buying, as speculation over potential import quota restrictions emerged. Offers from Indonesia were reported at $250-255/t FOB, while Chinese material was assessed at $265-275/t FOB, according to sources.
Chinese met coke prices drop
Metallurgical coke prices in China fell by RMB 50-55/t ($6.9-7.6/t) on 9 December, as steelmakers have reduced procurement costs due to subdued demand and low profitability. Offers for wet-quenching coke in Shanxi dropped to RMB 1,480-1,580/t, while dry-quenching coke in Shandong was priced at RMB 1,880-1,950/t, including VAT. Stabilisation is expected as market sentiment improves.
IOCL raises pet coke prices, imported offers inch down
Indian Oil Corporation Limited (IOCL) has raised pet coke prices for December deliveries. At Koyali Refinery, road delivery rates increased by INR 460/t to INR 10,640/t from INR 10,180/t. Panipat Refinery's price rose by INR 470/t to INR 11,440/t. At Paradip, rates were hiked to INR 9,870/t, while prices at Haldia were set at INR 10,040/t.
Prices of imported pet coke in India dipped $1/t w-o-w. For the west coast, CFR prices were recorded at $100-101/t, while for the east coast, they stood at $102-103/t, down from $101-103/t and $103-105/t last week. Market activity remained steady as buyers continued regular purchases amid stable demand.
India: Coal freight rates decline on weak demand
Coal freights in India fell this week due to vessel oversupply and subdued cargo demand. Rates from Australia to Paradip dropped $0.85/t w-o-w to $13.35/t, while South Africa's RBCT to Paradip rates fell by $0.7/t to $12.3/t. Indonesia-India freights declined $1.6/t to $9.6/t. Increased port stocks and weak bunker prices further pressured the market.
