India: Coal freight rates edge higher on rising demand and Baltic index increase

• Rising steel demand boosts inquiries
• Baltic indices up w-o-w
• Portside thermal coal stocks in India edge down

India’s coal vessel freights increased this week amid recovering steel demand followed by lowering stocks at ports. Moreover, rising steel production led to improved inquiries in the global market.

Notably, thermal coal stocks at Indian ports edged down by 1.8% to 12.67 million tonnes (mnt) in week 40 from 12.90 mnt in week 39, calendar year 2024 (CY’24), according to BigMint’s data.

Baltic indices surge m-o-m: The Baltic indices for Panamax and Supramax vessels surged this week. Meanwhile, the Baltic Panamax Index (BPI) was recorded at 1,388 points on 7 October against 1,294 points on 9 September. The Baltic Supramax Index (BSI) was assessed at 1,258 points on 7 October, largely stable m-o-m.

Route specifications:

• Australia-India freights inch up: Freights from Australia rose marginally by 0.1/tonne (t) w-o-w, with BigMint’s assessment indicating that rates for Hay Point Port to Paradip were at $15.9/dry metric tonne (dmt). Sources informed that SAIL has booked a Panamax vessel from Hay Point to Paradip Port at higher rates, with shipment scheduled for 1-10 November. Additionally, RINL and Tata Steel were also active in the market, seeking tonnages.
• South Africa-India freights edge up: Freights from the Richards Bay Coal Terminal (RBCT) to Paradip stood at $15.35/t, up by $0.15/t w-o-w. Fresh inquiries for the route have supported rates. As the festive season approaches, Indian buyers are expected to increase their procurement of South African coal to meet rising steel demands.
• Indonesia-India freights increase: Freights for coal shipments from East Kalimantan to Paradip stood at $14/t, up by $0.6/t w-o-w. As per sources, a recovery in the thermal coal market, due to declining coal stocks at the ports, has driven buyers to start procuring material.