China coastal coal freight rates plummeting for over two weeks

sxcoal.com Policy,  Viewpoint,  Price 2018-01-04 09:07:00

Freight rates for coal cargoes from northern China ports to the south have been tumbling for over two weeks since reaching multi-year highs on December 15, showed data from sxcoal.com.


On December 15, freight rates on routes from Qinhuangdao to Guangzhou, Fuzhou, Ningbo, Shanghai and Zhangjiagang ports all hit record highs of 2017.


Freight of 40,000-50,000 DWT vessels from Qinhuangdao to Guangzhou peaked at 82.7 yuan/t on the same day. Since then, freight rates have been suddenly turning downside, and falling back rapidly below the 60 yuan/t at the end of the year. It was even lower than 63.2 yuan/t at the beginning of the month, where the price started to shoot up.


On December 2, the freight rate of 40,000-50,000 DWT vessels from Qinhuangdao to Shanghai port stood at 46.6 yuan/t; that of route of Qinhuangdao-Guangzhou for 50,000-60,000 DWT vessels at 57.6 yuan/t; Qinhuangdao-Ningbo on 15,000-20,000 DWT basis, 57.3 yuan/t.


On the same day, rate on route from Qinhuangdao to Fuzhou dropped to 58.5 yuan/t, on 30,000-40,000 DWT basis; while that for 20,000-30,000 DWT vessels to Zhangjiagang went down to 55.7 yuan/t.

Routes from other northern ports like Tianjin, Jingtang and Huanghua also showed the same trend. Freight rate of 30,000-40,000 DWT vessels from Huanghua to Shanghai stood at 49.4 yuan/t on December 2, sinking 25.7 yuan/t or 34.2% from December 15.


Some players analyzed the freight decline can be deemed as a reasonable drop-back from exorbitant levels, while some attributed it to increasing vessels waiting at northern ports.


Data of sxcoal.com showed the number of vessels anchoring off Qinhuangdao port was above 100 in December 19-31, and reached the year's high of 132 on December 26.


"The freight rate has close links with the number of vessel queue," one analyst said, adding the decline has slowed in the first days of the new year, when vessels queuing at Qinhuangdao port went down below 100.


A Hebei-based coal trader said traders at northern ports were reluctant to sell their cargoes with higher costs at the end of the year, as they had to pay high storage charges to ports.


"The decline has something to do with the lift on coal import curbs at southern ports," said a Guangzhou-based trader.


Huatai Futures reported the central government's decision to halt strict supervision methods for import coal, which lasts until February 15, is a way to moderate its domestic coal supply shortage, but didn't mention any details. "All import coal shall be only used for power generation," it added.  


(Writing by Alex Guo  Editing by Harry Huo)
For any questions, please contact us by inqury@fwenergy.com or +86-351-7219322.

Share this article
Connect with us

Editors Recommendations

1 Weekly China coal market news summary (Jun 11 – Jun 15) 2018-06-15

China to launch broader environmental inspections this month China will expand environmental inspections to more cities and regions in a new round of checks from this month to April next yea

2 China May coal imports dip 1.28% YoY from Newcastle terminals 2018-06-15

China imported 985,600 tonnes of coal from Australian Newcastle terminals (Carrington and Kooragang) in May, dipping 1.28% from a year ago and slumping 34.09% from a month before, showed data from the

3 China Coal Daily Track (Jun 15) 2018-06-15

Thermal coal Domestic market Thermal coal prices edged up in Shaanxi amid low stocks and robust sales. Prices continued climbing in Ordos of Inner Mongolia thanks to limited output at

4 China's coal import policy remains unclear, foreign prices stay firm 2018-06-15

China is yet to reveal any official statement on relaxing coal import curbs at coastal ports, although some sources said restrictions had already been eased at some ports, traders said. A

5 China's spot thermal coal offers weaken on slid purchase 2018-06-15

Offer prices of spot thermal coal fell back at northern China ports, frustrated mainly by decreased buying appetite from power plants amid strong wait-and-see sentiment. "Prices dropped q

6 China Shenhua May polythene sales surge 57.5pct YoY 2018-06-15

China Shenhua Energy Co., Ltd, one world-class coal-based integrated energy company, sold 32,600 tonnes of polythene (PE) in May, an 57.5% increase on the year, said the company in a statement late Ju

7 China Shenhua May commercial coal output 2.5% YoY 2018-06-15

China Shenhua Energy Co., Ltd, a listed arm of China Energy Investment Corporation, produced 24.7 million tonnes of commercial coal in May, edging up 2.5% year on year and 2.92% month on month, the co

8 China's Tianjin set to switch vehicle fuel to ethanol gasoline from Oct 2018-06-15

Northern China's metropolis Tianjin is set to introduce ethanol gasoline to replace the regular one and complete the entire switch before October, said the municipal governmental in a plan on June

9 Asian coal, gas markets roar into top gear 2018-06-15

Thermal coal and gas prices have coursed into a bull run, propelled by particularly strong demand across Asia, where electricity consumption is surging thanks to healthy economic growth just as season

10 China steel output jumps to record despite smog campaign 2018-06-14

China's steel output surged to a record in May as mills ramped up production to chase fat profit margins, with a strong outlook for demand likely to keep mills running at nearly full capacity for the

Most Read Articles

1 China to launch broader environmental inspections this month 2018-06-11

China will expand environmental inspections to more cities and regions in a new round of checks from this month to April next year, the Ministry of Ecology and Environment (MEE) said in a statement on

2 China's major coal miners vow to ensure supply and stabilize prices 2018-06-12

While CHN Energy announced late last week to lower their June contract coal price within the "yellow range" below 600 yuan/t, more major miners have promised to lower prices to ensure adequate supply

3 Major Chinese miners work to stabilize thermal coal prices 2018-06-11

Some leading miners in China made price adjustments in response to government's call for stabilizing thermal coal price and supply, sources said. China Energy Investment Cor

4 CHN Energy reduces contract coal prices within 600 yuan/t, sources 2018-06-11

China Energy Investment Group, also known as CHN Energy, announced to control its monthly contract prices of thermal coal, media reported late June 8, in a way to cool down the overheated coal market.

5 China's steel mills utilisation rate falls for 3rd week on environmental checks 2018-06-12

Utilisation rate at steel blast furnaces across China fell for a third consecutive week last week as of June 8, data showed, as environmental inspections continued to weigh on operation at steel mills

6 Weekly China met. coke market analysis and forecast 2018-06-12

Coke producers in China's main production areas of Shanxi, Shandong and Hebei adjusted up their selling prices again by 100 yuan/t from June 8, the first rise this month and the seventh in a row si

7 Plan to merge pipeline assets of three energy giants on track in China 2018-06-13

China is pushing ahead with a plan to combine oil and gas pipeline assets of three State-owned energy giants into a new company, Bloomberg reported. The specific reform plan is

8 China proceeds development of coal-to-oil conversion 2018-06-15

China is developing new energy sources by converting coal into diesel. The world's first coal to diesel conversion production line, in China's Inner Mongolia autonomous region, produced 8

9 China's 20 large steel makers launch maintenance to improve environment 2018-06-14

A total 20 Chinese large steel makers have launched maintenances since June 11, said the Ministry of Ecology and Environment days earlier, in a move to strengthen environmental inspections at key poll

10 China's raw coal output rises to a new high in May 2018-06-14

China's raw coal production registered a new high in May since this year, according to official data, as miners churned out the material driven mainly by tempting profit and rallying prices.