Australian coking coal prices have held firm this week, extending the gains made over the past fortnight with more bookings concluded at higher levels on FOB basis.
A total of four transactions were reported to have lately taken place in the spot market. The first transaction was for an 80,000t cargo of premium low-volatile hard coking coal, with January 1-10 laycan, traded at $102/t FOB Australia.
The second was for another 80,000t cargo of premium low-volatile hard coking coal, with January 10-19 laycan, traded at $103.50/t FOB Australia.
The third and the fourth were for 80,000t and 75,000t of premium hard coking coals, with January 15-24 laycan, priced at $103/t FOB Australia.
Tight supply supports Chinese prices; no sign of Australia-China tensions easing
China delivered prices remained supported amid higher price expectations, on the back of strong demand from Chinese mills for low-volatile coals and supply tightness of non-Australian coals.
In China, market sentiment was relatively steady but price expectations for seaborne non-Australian coking coal were lifted higher amid the strength seen in domestic coking coal prices of all grades from low sulfur to mid sulfur, fat coal, pulverized coal injection and semi soft.
Market sources do not believe China’s ban on Australian coal will be removed any time soon. Several trader sources from China predicted that premium hard coking coal prices in the CNF market will continue increasing for the rest of the year due to China’s ban on Australian coking coal, which pushed most steel mills to turn to alternatives from the United States and Canada.
Chinese market participants expected the escalating tensions with Australia do not appear to ease, and hence more non-Australian cargoes will find their way into China as buyers therein have the ability to pay higher prices.
India Coal Import Shipment Vessel Lineup
CoalMint’s latest vessel lineup data (as on 2nd Dec’20) reveals that a total quantity of 2,036,996t of Australian coking coal is expected to reach various Indian ports by 25th Dec’20.
824,850t Dhamra (Odisha)
88,000t Ennore (Tamil Nadu)
80,950t Gangavaram (Visakhapatnam)
176,400t Haldia (West Bengal)
75,940t Jaigarh (Maharashtra)
305,593t Krishnapatnam (Andhra Pradesh)
154,000t Mormugao (Goa)
286,263t Paradip (Odisha)
45,000t Vizag (Andhra Pradesh)
Price Assessments
Latest prices for the Premium HCC and the 64 Mid Vol HCC grades are assessed at around $102.50/t and $94.00/t FOB Hay Point, Australia.
For Indian buyers, these prices amount to $116.20/t and $107.70/t respectively on CNF India basis.
Australia-India dry bulk freight rate is currently assessed at $13.70/t for delivery by Panamax vessel class.
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By Aditya Sinha
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