—Australian thermal coal 5500 NAR prices have moved up today by $1-1.5/t and is currently assessed at $39.5-40/t.
—CoalMint learned from market sources that Chinese demand for Australian coal has rebounded in the past two weeks on expectations that Beijing would ease restrictions on coal imports.
—Chinese buyers have booked large quantities of Australian coal for November-end and December loading, which are expected toa arrive at Chinese ports in January 2021 – when the new quota system would be rolled out.
—At least four November-loading capsize and panamax cargoes of Australian coal 5500 NAR is heard to be booked at $39.5-50/t, FoB Newcastle basis this week, destined to arrive at China.
—5500 kcal/kg thermal coal prices had touched new low of $35/t in the first week of September. Whereas, in Jan’20, the same was assessed at 51.2/t, FoB Newcastle basis.
Strict environmental norms coming up in China
—In an effort to control pollution, Chinese government is set to announce stricter environmental norms during winters requiring use of cleaner and less-polluting coal.
—As a result, Chinese buyers are opting for imports of high CV Australian coal which are considered to be of superior quality as against the domestic coal in China.
Likely impact in Indian market
With Australian coal inching up steadily, Indian buyers especially in cement sector that were preferring Australian coal over costlier South African material, would also start booking Australian coal in anticipation of its price rise. Subsequently increased buying interest from Indian market would further push up the Australian thermal coal prices in coming weeks.
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