- Active enquiries on improved demand bolster freight rates
- Sufficient cargo availability at ports post-Eid holidays
Coal freight rates inched up this week. The rise in coal stocks at Indian ports can be attributed to the growing demand for coal particularly as the summer season has arrived. This increase in demand is primarily fuelled by heightened requirements from power plants. As a result, there has been a build-up of coal stocks at ports.
Route-wise details:
- South Africa to India freight rates up w-o-w: Freight rates for coal shipments from the Richards Bay Coal Terminal to Paradip, India, are currently at around $17.48/tonne (t), an increase of $0.83/t w-o-w on 18 April, as per BigMint’s assessment. Trading activity was thin in South Africa as market participants were absent due to the Eid holidays. Indian buyers maintained a subdued stance due to robust domestic coal production.
- Australia-India freight rates rise w-o-w: Freight rates from Australian ports increased w-o-w for Indian as well as for Chinese ports. As per BigMint assessment, coal freight rates from Port HayPoint, Australia, to Paradip, India, were recorded at $18.13/t, up by $1.25/t w-o-w. Persistent market demand has been evident, particularly after steel product prices rebounded and mill margins improved. The involvement of end-users indicated sustained demand.
- An enquiry has been recorded as fixed this week, with SAIL booking a panamax vessel for 75,000 t of metallurgical coal from DBCT Port, Australia, to Vizag and Haldia at around $18.75/t. The shipment is scheduled for 4-13 May, sources informed.
- Indonesia to India freight rises w-o-w: Freight rates for coal shipments from East Kalimantan to Paradip stood at $12.85/t, up by $0.9/t w-o-w today. Coal stockpiles at Indian power plants have been decreasing slightly day by day. Some enquiries from Indian power plants have freight rates supported.