Coking Coal prices continue to fall in the absence of any retardant.
Availability of ample unsold cargoes in Australia, and that too in an environment ruled by weak demand, has prompted the Coking Coal sellers to continuously lower their prices of the coal. On the buyers’ side, the steel makers in China have lowered their Coking Coal purchases in view of the falling prices. The Chinese steel makers have expected the coal prices to fall further down as fresh supplies were continuously hitting the market.
Offers for the Premium HCC have fallen to around USD 179/MT FoB Australia, which were down by around USD 7/MT over the week-ago offers. And offers for the 64 Mid Vol HCC have slipped to around USD 166.50/MT FoB Australia, a decline of around USD 11.25/MT against the offers in the week last.
Source: CoalMint Research
On CFR India basis, these offers translate into: USD 191.70/MT and USD 179.20/MT respectively.
In India, steel makers have lowered their purchases as the coal prices were moving downwards; however, they are expected to ramp up their purchases from the next month onwards, to stock the coal ahead of the rainy season.
Imports of Coking Coal have nevertheless been going on continously due to the deficiency in domestic supply. And the imports are also expected to shoot up in the future due to the rising steel production in the country.
According to the data gathered by CoalMint Research, around 3.5 MnT of the coal was imported in the country during the 1-23Apr’18 period.
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