Australia’s premium hard coking coal prices slipped amid sluggish demand from mills in China, as buyers still withhold procurement activity in order to take stock of the overall direction of seaborne coking coal.
Further, as supply of Australian coking coal has increased with cyclone concerns getting over, Chinese traders are raring to liquidate their unsold cargoes on hand. Accordingly, sellers have lowered offers to attract buyers.
On the other hand, the 64 mid-volatile coking coal prices have held steady over this month so far.
Although seaborne coking coal has remained relatively cost competitive than domestic material of similar ash and sulfur compositions, China-based steelmakers are reassessing the customs delay involved—due to stringent import restrictions imposed on Australia-origin coking coal delivered at southern China ports.
Lately, however, Australian metallurgical coal prices had inched up, particularly in the premium segment, with multiple sell tender and buying interest heard in the Chinese market.
Demand for imported met coal in India, meanwhile, has stayed healthy, but some sources indicated that there are incremental interests for smaller tonnages.
Most end-users are looking at forward bookings of seaborne coking coal cargoes with laydays cancelling (laycan) dates for late-May and early June.
PRICE ASSESSMENTS
Latest offers for the Premium HCC grade are assessed at around USD 201.75/MT FOB Australia, which is almost at par compared with the average rate of USD 201.20/MT that prevailed in the week gone by (1-5 Apr’19).
Offers for the 64 Mid Vol HCC grade are assessed at around USD 174.45/MT FOB Australia.
For Indian buyers, the above offers amount to USD 213.65/MT and USD 186.35/MT respectively on CNF India basis.
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