South Korea: KEPCO coal tender fixed lower as Pacific Panamax rates soften

• KEPCO tender fixed lower at $10.92/dmt
  
  
• Utility coal demand continues to support Panamax market
  
  

South Korea remained active in the Pacific Panamax coal freight market, with state-owned utility Korea Electric Power Corporation (KEPCO) continuing to secure tonnage for its thermal coal import requirements. Market participants noted that regular procurement activity by South Korean utilities is helping sustain cargo demand despite recent softening in regional freight rates.

In its latest tender, KEPCO fixed the vessel Polaris to transport an 80,000 tonne (t) coal cargo from Taboneo, Indonesia, to Taean, South Korea. The cargo is scheduled to load between 20-29 June 2026, and the fixture was concluded at a freight rate of $10.92/dmt on FIO terms.

The fixture reflects a marginal decline from KEPCO's previous Indonesia-South Korea tender, where a Pan Ocean vessel was fixed at $11.20/dmt for an 80,000 t shipment from Tanjung Kampeh, Indonesia, to Dangjin, South Korea, with loading during 16-25 June. The softer freight level suggests easing vessel availability in the Pacific basin, although continued coal procurement by South Korean utilities remains supportive for Panamax demand.

Indonesia-origin coal cargoes continue to attract strong buying interest from South Korea due to their shorter sailing distances and competitive freight economics compared with Australian exports. Market participants expect utility buying activity to remain steady in the coming weeks as power generators continue replenishing coal inventories ahead of peak summer electricity demand.