Coal news and updates

Panamax coal freight rates on established routes from South Africa's Richards Bay and Indonesia to India continued to trend down this week, falling 20-50 cents Thursday, on lower-priced fixtures and weak market sentiment.

 

Platts assessed the Panamax coal freight rate from Richards Bay to India's east coast at $17.50/mt and to the west coast at $17/mt Thursday, each down 50 cents from Wednesday.

 

A fixture was heard concluded Wednesday at $16.85/mt for shipment of 75,000 mt plus or minus 10% of coal from Richards Bay to Dahej in Gujarat on India's west coast for a November 5-19 laycan, market sources said, although this could not be confirmed.

 

"The market is still heading south," a Singapore-based shipbroker said.

"We do not expect big drops but we don't see any reason for a pick-up either," the broker added.

 

Owners' rates for Panamax vessels along the Richards Bay to India route averaged $18/mt while charterers were seeking $15.50-16/mt, sources said. A Singapore-based trader reckoned offers at $17-18/mt were unlikely to attract charterers.

 

Panamax coal freight rates also trended down on the Indonesia to India routes Wednesday on the back of excess tonnage in the market. Platts assessed Panamax coal freight rates from South Kalimantan to India's east coast at $10.80/mt, down 40 cents from Wednesday, and to the west coast at $12.40/mt, down 20 cents from the previous day.

 

A fixture was heard concluded at $10.50/mt for shipment of 70,000 mt plus or minus 10% of coal from South Kalimantan to Ennore in Tamil Nadu on east coast India, sources said.

 

Market sources expected Panamax freight rates to continue trending down.

 

"Panamax rates are continuing to head south," an India-based broker said.

 

"The demand that was driven by higher Cape freight rates has eased off," he added and expected the downtrend to continue.

 

CAPESIZE REMAINS UNDER PRESSURE

 

Market participants also spoke of a fixture heard concluded at $11.50/mt for a Capesize vessel from Richards Bay to Krishnapatnam in Andhra Pradesh on India's east coast, though this could not be confirmed.

 

Shipbroker Fearnleys said in a weekly report Wednesday that there appeared to be "no light at the end of the tunnel for shell-shocked owners" of Capesize vessels.

 

 

Source: Platts