FoB prices for Australian coking coal have continued to maintain their same levels in past six weeks, because of a demand slowdown since before the year-end break as supply continued to outweigh demand.
Asian markets outside China witnessed a rather slow start to this year’s first trading week as end-users showed little urgency to book cargoes, leaving spot prices unchanged.
Alongside limited spot demand from end-users in Europe, North Asia and India, Chinese traders have been looking for reselling opportunities, thereby aggravating concerns of excess supply of Australia-originated premium coking coal.
Indian buyers reassessing buying options at spot seaborne coking coal market—
Presently there are no fundamental changes in the Indian market for seaborne coking coal, with relatively stable demand.
Nevertheless, sellers are targeting the Indian market where buyers are finally showing an interest to procure spot cargoes and are receptive to spot fixed-price offers, having mostly waited on the sidelines in the previous months.
Moreover, Indian steel markets had been performing reasonably well and some Indian buyers are keen to conclude spot deals.
Australian coking coal prices may rise but slowly—
The Australian coking coal market would eventually see demand recover sufficiently from India and Northeast Asian contract buyers, limiting surplus availability for spot sales to ex-China markets and driving up prices.
Furthermore, heavy rains reported along the North Queensland coast this week may cause a slowdown in mining operations in Australia’s metallurgical coal hub of Queensland. But for now, spot market prices have not been influenced by the weather conditions.
India Coking Coal Import Shipment Vessel Lineup
CoalMint’s latest vessel lineup data reveals that a total quantity of 2,540,232t of Australian coking coal is expected to reach various Indian ports by this month.
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 $102.00/t and $93.50/t FOB Hay Point, Australia.
For Indian buyers, these prices amount to $115.90/t and $107.40/t respectively on CNF India basis.
Australia-India dry bulk freight rate is currently assessed at $13.90/t for delivery by Panamax vessel class.
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By Aditya Sinha
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