Seaborne metallurgical coal export prices have slid further in the past week amid weakening demand from across the globe in response to the bearish outlook on the worldwide steel market and subdued buying interest in major steel-producing countries.
Chinese domestic coking coal prices have also inched down lately, as metallurgical coke prices came under pressure from Tangshan’s output cut.
However, a fresh deal of Australian premium low-volatile material with early-August laycan was concluded to an end-user in China.
Relative to domestic coking coal of high coke strength after reaction, low ash and sulfur properties, seaborne coking coal of similar specifications have been a price competitive option, but Chinese users continue to adopt a cautionary stance towards procurement.
Presently, the spot supply of hard coking coal is tighter relative to premium low-volatile cargoes. This shortage of hard coking coal with low ash and sulfur should ease the fall in hard coking coal prices compared to premium hard coals.
Meanwhile, Chinese trading sources anticipate demand for imported premium low-volatile coking coal to last long as the country’s steelmakers have become amenable to meet the government’s environmental standards, which require end-users to seek proper-quality coals with high coke strength after reaction and low ash and sulfur content.
In the Indian market, trading activities remained thin without any immediate spot demand due to the timely onset of monsoon season.
PRICE ASSESSMENTS
Latest offers for the Premium HCC grade are assessed at around USD 195.00/MT FOB Australia, lower by USD 1.40/MT than the average rate of USD 196.40/MT prevailing in the week gone by (17-21 Jun’19).
Offers for the 64 Mid Vol HCC grade are assessed at around USD 176.25/MT FOB Australia.
For Indian buyers, the above offers amount to USD 207.60/MT and USD 188.85/MT respectively on CNF India basis.
Leave a Reply