Coal news and updates

Firm Asian thermal coal prices, high freight hurt ex-Chinese seaborne deals

Firm seaborne thermal coal prices and volatile freight rates have slowed down interests from Asia’s ex-Chinese markets like Thailand, Vietnam and India, market sources told S&P Global Platts.

These markets are expected to return in March on hopes that prices and freight would ease for procurement in April.

Prices soared after Indonesia’s ban on coal exports in January aggravated supply tightness in the Asian markets while firm demand from consumers in China and South Korea supported values. Prices of Australian high-ash coal also spiked as buyers sought replacement coal.

“India, Vietnam and Thailand are on sidelines for sometime now. If the freight rates are back to normal then things will be workable for them,” an Indonesian trader said.

The price of Indonesian 4,200 kcal/kg GAR averaged $67.593/mt FOB in January, and was assessed at $80.05/mt FOB Feb. 14, according to Platts data. Meanwhile, the price of Australian 5,500 kcal/kg NAR with 23% ash content averaged $125.66/mt FOB in January and was assessed at $150.25/mt FOB on Feb. 14.

The lack of floating cranes in Kalimantan have prompted charterers to move cargoes on geared Supramax and Ultramax vessels, which have the capacity to self-load and discharge, Platts reported Feb. 10.

Meanwhile, market participants said high Supramax freight rates were dampening buying sentiment. The Supramax freight rate from South Kalimantan to Krishnapatnam in the East Coast of India rose from $16.05/mt on Jan. 31 to $24.85/mt on Feb. 14. The Panamax freight for the same route rose from $10.15/mt Jan. 31 to $13.15/mt Feb. 14, Platts data showed.

The Supramax freight from East Kalimantan to Kohsichang in Thailand rose from $11.38/mt on Jan. 31 to $17.25/mt on Feb. 14.