- Indian mill books coking coal vessel from Australia
- Australian coking coal prices drop on lower bids
Coal vessel freight rates have shown mixed trends this week. Rise in coal stocks was witnessed at Indian ports, fuelled by the growing demand for thermal coal. Buyers are preferring to stock amid approaching rainy season. Meanwhile, high temperatures are also driving up power demand nationwide, further contributing to the increase in coal stocks. However, enquiries are under negotiation for some routes, which have weighed on freight rates.
Route specifications:
- Australia-India freight rates inch down w-o-w: Freight rates from Australian ports dropped w-o-w for India. As per BigMint’s assessment, coal freight rates from Port Hay Point, Australia, to Paradip, India, were recorded at $18.8/tonne (t), slightly down by $0.2/t w-o-w on 16 May. This drop can be attributed to subdued demand from Asia. In addition, some enquiries for Australian coal are still under negotiation this week. Australian coking coal prices (FOB Australia) dropped by $4.5/t d-o-d. Most of the Chinese buyers have reduced bids on falling domestic coking coal prices and traders are aggressive in selling June loading cargoes pulling down the prices. Notably, Australia’s Hay Point Port Berth 2 is presently undergoing maintenance shutdown from 13 May -17 May, 2024. In April, 2024, Hay Point’s total coal exports amounted to 3.06 mnt. Hay Point contributed 11% share in Australia’s total exports, which amounted to 27.90 mnt in April, 2024.
- A source informed BigMint, “An enquiry got fixed this week. SAIL has booked a Panamax vessel of cargo capacity 75,000 t from HayPoint port to Vizag and Haldia port at a freight rate of $19.45/t. The shipment is scheduled on 5-14 June.”
- South Africa to India freights increase w-o-w: Freight rates for coal shipments from the Richards Bay Coal Terminal (RBCT) to Paradip, India, are currently at around $19.5/t, an increase of $0.39/t w-o-w. Demand of imported South African thermal coal edged up freight rates amid restocking before monsoons. Meanwhile, active enquiries have supported the freight to stood up. However, absence of enquiries in this week, might got fixed in near future.
- Indonesia to India freights increase w-o-w: Freight rates for coal shipments from East Kalimantan to Paradip stood at $14.6/t, inching up by $0.10/t w-o-w today. Rise in freight rates for Supramax cargoes also impacted buying interest. On the supply side, Indonesian producers continued to emphasise on ensuring domestic supply, with miners focusing on increasing sales to domestic nickel smelters amid rising demand from the sector.