[TISCO secures 243,000 mt in steel demand through Thai Nguyen project connections]

Yemen's Houthi movement said on August 9 that it had launched a drone attack on Saudi Aramco's Jazan refinery in Saudi Arabia, which has a crude processing capacity of around 400,000 barrels per day. Saudi Arabia's energy ministry said the resulting fire was later extinguished with no injuries, while no specific supply losses have been reported. The Houthis also launched missile and drone strikes on Yemen's Mocha port near the Bab el-Mandeb Strait, further increasing security risks for energy and commercial shipping in the Red Sea. If shipping risks in the Red Sea continue to escalate, higher war-risk insurance premiums, bunker fuel costs and potential rerouting expenses could push up international coal freight rates and CFR landed costs.

Industrial action at BHP’s Port Hedland iron ore operations in Western Australia expanded further on August 9, with around 100 additional workers joining a 24-hour stoppage, bringing the total number of participating workers to about 150. The action followed a 24-hour ship-loading halt on August 8. Port Hedland is the world’s largest iron ore export hub, while BHP ships around US$80 million worth of iron ore through the port each day, increasing concerns over potential short-term disruptions to seaborne iron ore supply. However, BHP said vessels continued to be loaded during the strike, while rival miners Fortescue and Hancock Prospecting are not expected to be affected by the industrial action. BHP and the unions are scheduled to resume negotiations on August 18 over a proposed four-year bargaining agreement.

Heavy rainfall in coal-producing regions including Telangana and Maharashtra has disrupted mining operations and rail transportation, reducing coal deliveries to Karnataka. The number of coal rakes reaching the state has fallen from around 11 per day under normal conditions to about five to six per day, significantly slowing coal arrivals at power plants. At the same time, Karnataka’s electricity demand remains elevated at close to 300 million units per day, while hydropower generation has yet to fully recover, leaving the state relatively dependent on coal-fired generation. If heavy rainfall and rail disruptions persist, power plant inventories could decline and restocking pressure may increase, potentially supporting regional spot thermal coal demand and prices. However, coal inventories at local power plants remain adequate for now, limiting the risk of an immediate fuel shortage.