Coal news and updates

Panamax coal freight rates in the Pacific slipped Wednesday, as sentiment remained soft on low activity.

 

Market sources Wednesday agreed that the Panamax market is likely to remain soft this week, with owners preferring not to fix cargoes until after the Chinese return from the Lunar New Year holidays next week.

 

"Tonnage supply is still huge in the Far East at the moment," a Singapore-based broker said. "Charterers are picking and choosing, and they'll pick up the best ships, leaving the rest to the next lot. It's a charterers' market."

 

Indications on Wednesday fell in the $8.25/mt-$8.50/mt range for the route from South Kalimantan's Banjarmasin port to west coast India's Mundra port, and around $7-$8/mt for Banjarmasin to east coast India's Paradip port.

 

Platts assessed the route from South Kalimantan's Banjarmasin port to west coast India's Mundra port at $8.50/mt, falling 20 cents from Tuesday. Banjamarsin to east coast India's Paradip port was assessed at $7.50/mt, also falling 20 cents from Tuesday.

 

Among fixtures heard done was one from Indonesia's Samarinda port to New Mangalore on India's west coast at $9.20/mt for a 70,000 mt cargo plus/minus 10%.

 

Also assessed was the route from South Africa's Richards Bay coal terminal to Mundra at $15.60/mt and to Paradip at $15.90/mt, both falling 10 cents from Tuesday.

 

INDIAN BUYERS BACK IN MARKET FOR INDONESIAN THERMAL COAL

 

Indian buyers were in the market for Indonesian thermal coal this week, and emerged in the market Wednesday with bids and offers heard falling in a low range on Supramaxes.

 

A Supramax vessel was heard fixed at $8.45/mt from Indonesia's South Kalimantan to Vizag port in India's east coast. Other bids and offers heard in the market included a 50,000 mt plus/minus 10% cargo to east coast India's Krishnapatnam port from South Kalimantan, where charterers were aiming to conclude at $8.25/mt against owners' offers at $8.75/mt. No laycan dates were available for these cargoes.

 

"The Supramax market is so low at the moment," one Singapore-based broker said, who called the market at $9.50/mt on the Indonesia to India route.

 

An India-based shipbroker said owners were reluctant to fix at what could be historically record-low Supramax rates.

 

"$8.45/mt for Supramaxes is historically lowest," a Singapore-based charterer said. "This is because nickel ore and bauxite are out of the market completely, and China as well."

 

The charterer believes the entrance of Indian demand for coal Wednesday is not atypical, contrary to other market sources who believe Indian buyers are appearing in the market to take advantage of a weak market lacking China demand.

 

"India is not expecting to move too much coal, only need-based coal," he said. "Liquidity in the market is very poor. Although they are in the market currently, they're only buying what they can chew."

 

 

Source: Platts