Australian coking coal prices continued their downward movement over the past week amid weak demand in Asian countries, especially in China and India; but the prices fell at a slower pace than the stupendous fall in the second-to-last week.
In China, the ongoing uncertainties over the US-China trade war and strict import restrictions at various ports have hindered buying interest.
Moreover, the depreciation of the Yuan and declining coke prices have aggravated the bearish situation even more.
Furthermore, China’s environmental restrictions on coal consumption, and the prospective production curbs on steel and coke capacity have heightened the domestic steelmakers’ worries.
Also the Indian market has quietened due to the onset of monsoon season.
Notably, Australia is the largest global exporter of metallurgical coal—China, India and Japan each buy 20-25% of Australia’s met coal exports, according to analysts at the Commonwealth Bank of Australia (CBA).
On the pricing front, the latest import offers for the Premium Low-Vol HCC grade are assessed at around USD 174.25/MT FOB Australia, lower by about USD 6.50/MT compared with the rates in the week gone by.
Similarly, offers for the 64 Mid-Vol HCC are assessed at around USD 159.80/MT FOB Australia, lower by about USD 8.20/MT than the previous week’s rates.
Source: CoalMint Research
For Indian buyers, the above offers amount to USD 188/MT and USD 173.55/MT respectively on CNF India basis.
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