Seaborne premium hard coking coal prices slipped as Chinese steel margins decline, although prices for the 64 Mid Vol HCC grade remained relatively stable.
In the FOB market, recent concerns over adverse weather conditions in Queensland eased as Cyclone Owen dispersed bearing minimal impact than feared. Also, vessels queue at the Dalrymple Bay Coal Terminal now appears to be normal.
In China, the buying interest has slowed down, as most purchase requirements have already been fulfilled earlier in consideration of bad weather conditions in Australia.
Moreover, the Chinese buyers are heard to be concerned over softer steel margins, because the overall outlook for Q1 2019 steel market still remains under pressure.
Traders believe that there is further room for price decreases in the premium low-vol hard coking coal segment.
PRICE ASSESSMENTS
Latest spot prices for the Premium HCC grade are assessed at around USD 227.50/MT FOB Australia, lower by about USD 2.50/MT than the closing price of USD 230/MT in the week gone by (10-14 Dec’18).
However, current import offers for the 64 Mid Vol HCC grade have remained fairly constant since over a week at around USD 184.70/MT FOB Australia.
For Indian buyers, the above offers amount to USD 240.90/MT and USD 198.10/MT respectively on CNF India basis.
Source: CoalMint Research
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