- China’s currency devaluation is inflating procurement cost for imported coking coal
- Chinese domestic metallurgical coke price increases supporting local met coal markets
Seaborne premium hard coking coal prices have remained unchanged so far this week since the $3/mt drop last Friday, amid thin buying interest in China.
In China, trading activity in the seaborne market has slowed down, with most buyers heard to have been adopting a cautious stance citing current price levels above $200 per tonne cfr China for premium materials.
However, Chinese trading sources anticipate prices of imported premium low-volatile coking coal to stay firm on persistent demand as the country’s steelmakers have become amenable to meet the country’s environmental standards, which require end-users to seek proper-quality coals with high CSR and low ash content.
Contrary to the ex-China market, Chinese domestic coking coal prices have gained strength and are expected to increase further next week due to higher demand from coke plants.
Meanwhile, the Chinese Yuan has dropped to a more than four-month low against the US dollar, following an impasse in US-China trade negotiations— the currency depreciated below 6.9 to the US dollar this week, touching its lowest level since late December.
PRICE ASSESSMENTS
Latest offers for the Premium HCC grade are assessed at around USD 209.50/MT FOB Australia, lower by USD 2.40/MT than the average rate of USD 211.90/MT that prevailed in the week gone by (13-17 May’19).
Offers for the 64 Mid Vol HCC grade are assessed at around USD 182.70/MT FOB Australia.
For Indian buyers, the above offers amount to USD 221.60/MT and USD 194.80/MT respectively on CNF India basis.
Leave a Reply