China: Domestic Coal Prices slips Again

It has been noted that on the last weekend the ports thermal coal stock have hardly dropped and also Chinese top coal miners have brought down their prices which had increased the expectation of Chinese buyers, who are looking for more discounts thereby, delaying deals. However, exporters are keeping their offer at the same level.

Chinese importers are delaying thermal coal deals. Port stocks have barely dropped and top Chinese coal miners have trimmed their prices by the end of the week as a result. However, exporters have not followed, keeping offers unchanged.

Traders are expecting the possibilities of more discounts from Chinese local miners, as they may reduce upto USD 3/MT. This domestic coal price fall will again hit the exporters.  As of last week, no international spot coal deal with China's end user has been heard.

However, in consideration of all factors, major exporters are keeping their prices unchanged. South Africa RB1 (6,000 kcal/Kg NAR) is available at the USD 71-73/MT FOB, with an almost unchanged price. Australian exporters are offering 5,500 kcal/kg material at USD 66/MT FOB and 6,000 kcal/kg at USD 76-77/MT FOB. Russians sellers also keeping their price unchanged and are offering 5,500 kcal/kg coal at USD 73-74/MT FOB and 6,080 kcal/kg material at USD 82-83/MT FOB. 

Current coal prices are becoming unfeasible to exporters and miners as Chinese domestic coal prices are falling sharply. However, traders are expecting the market to recover and become stable soon.