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Thermal coal Panamax freight falls as market awaits cargoes

The thermal coal Panamax freight market on Thursday lost some of the last week’s bullishness as firm cargoes eluded the market, sources said Thursday.

The coal freight market from Indonesia to India was quiet, market sources said, with freight rate indications slipping slightly on more bearish sentiment.

“It looks weak today,” one broker said. “There are not many Panamax cargoes from Indonesia to India.”

The Panamax coal freight rate from Banjamarsin port on Indonesia’s South Kalimantan to Mundra port on west coast India was assessed at $9.25/mt, down 25 cents from Wednesday. The route from Banjarmasin to Paradip was assessed at $8.25/mt, also falling 25 cents from Wednesday.

“If you’re looking at early May, you can get something a little cheaper than $8.50/mt [to east coast India],” one charterer said.

He added that that market players are “more optimistic about forward dates.” People are saying things can’t go down further, but there isn’t anything in the physical market at the moment to support that,” he said.

Supramax rates from Indonesia to India were also seen falling slightly, with one broker source seeing a Supramax cargo being discussed at around $11.50/mt, basis Paradip, while another was aiming for $10/mt from Samarinda to Paradip.

Rates on coal cargoes shipped on Panamaxes from the Richards Bay coal terminal in South Africa to India held steady Thursday.

Platts assessed the Richards Bay to Mundra port coal Panamax freight route at $14.25/mt and $15/mt to Paradip, both unchanged from the previous day.

A Libra cargo was heard fixed from Richards Bay to India’s Dahej port at $14/mt for mid-May dates.

“Tonnage is still very long opening up spot in the Pacific,” a charterer-owner said of Panamax coal freight rates in general. “Some change needs [to happen] on the demand side. We are just waiting for more cargoes and demand to pick up.”
Source: Platts