Seaborne coking coal prices plunged deeper this week, with several ports in Southern China, mainly Beilun and Ningbo, reportedly banning the discharge of imported coal.
As a matter of fact, this ongoing congestion at the ports had begun around last month and had intensified in recent weeks.
Accordingly, transactions are getting concluded at lower levels in the ex-China market wherein sellers are heard to extend hefty concessions to liquidate their stock on hand.
Moreover, Chinese steelmakers’ coal demand has been muted amid uncertainty around production cuts of steel and coke on environmental grounds as well as stricter port restrictions. Furthermore, trading activity has slowed down due to a depreciating Yuan.
In addition, the Indian market demand has considerably subdued due to the onset of monsoon.
On the pricing front, the latest import offers for the Premium Low-Vol HCC grade are assessed at around USD 180.75/MT FOB Australia, lower by about USD 19/MT compared with the rates in the week gone by.
Similarly, offers for the 64 Mid-Vol HCC are assessed at around USD 168/MT FOB Australia, lower by about USD 12.95/MT than the previous week’s rates.
Source: CoalMint Research
For Indian buyers, the above offers amount to USD 194.75/MT and USD 182/MT respectively on CNF India basis.
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