Coking Coal prices have continued traversing upwards under the influence of tight availability of cargoes and strong import demand.
In Australia, availability of Coking Coal cargoes are getting tighter as there is no incremental production ahead of the winter holidays to begin on 20Dec’17; and at the same time, import demand has strengthened substantially as steel makers in the major nations, including those in India, imported heavily to stock the coal for using in the holiday period, during which there will be no supply from Australia—the main importing region.
Offers for the Premium HCC have recently gone up to around USD 219.75/MT FoB Australia, up by around USD 13.25/MT over the week-ago offers. Exhibiting a similar trend, the latest offers for the 64 Mid Vol HCC also have moved upwards by around USD 6.7/MT, to around USD 173.10/MT FoB Australia, against the offers in the week last.
Source: CoalMint Research
These offers translate into: USD 233.15/MT and USD 186.50/MT respectively on CFR India basis.
In parallel to the supply-cut during the upcoming holidays in Australia, the prospect of the imminence of the rainy season in Australia towards Dec’17 also has catalyzed the import propensity among steel makers. With the onset of the rainy season, there is the likelihood for the rains flooding roads, rail lines, and other infrastructure that might put supply constraints. To fend off this prospect, steel makers are trying to stock the coal as much as possible.
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