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China coastal coal freight rates see decline again

Freight rates for vessels shipping coal from northern China to the south saw a decline again after the rebound last week, showed data from the Shanghai Shipping Exchange.

The decline seen in most shipping routes has lasted for consecutive three days by November 10, ranging from 0.1 to 0.3 yuan/t.

The shipping rate for vessels of 50,000-60,000 DWT from Qinhuangdao to Guangzhou port stood at 21.1 yuan/t on November 10, decreasing 0.1 yuan/t on day and down 0.4 yuan/t from a week ago, data showed.

The rate for smaller vessels of 15,000-20,000 DWT from Qinhuangdao to Ningbo port in eastern China's Zhejiang province was 22.5 yuan/t on the same day, falling 0.1 on day and down 0.3 yuan/t on week.

The rate for 30,000-40,000 DWT vessels to ship coal from Huanghua to Shanghai port stood at 18.5 yuan/t on the same day, unchanged on day and down 0.2 yuan/t on week.

The previous rise trend failed to continue in November, mainly due to extensive wait-and-see atmosphere amid persisting slack demand in coal market.

The volume of coal shipped out of Qinhuangdao port decreased 17.5% on week to 500,000 tonnes on average each day over the week ended November 10; while daily inbound coal railings fell 9.42% on week to 519,000 tonnes during the same period.

Daily coal consumption at power plants under the six coastal utilities stood at 529,000 tonnes on November 9, up 4.96% from a week ago; while their coal stocks totaled 13 million tonnes on the same day, up 1.25% from a week ago, which was enough to cover 27 days of consumption.

China’s coastal coal freight rates may stay at the low level in the short run, given the continuous supply glut and weakening confidence at domestic coal market.

 
source: http://en.sxcoal.com