The FOB prices for Australian hard coking coal continued to edge higher on latest transactions reported for various grades of premium hard coking coals, concluded at higher prices.
Two June-laycan cargoes of premium mid-volatility coking coal were traded at $112.75/t FOB Australia.
A 162,000 t cargo of premium low-volatility coking coal was traded at $111/t FOB Australia with a laycan of June.
Earlier this week, three more trades were concluded at $111/t FoB Australia for 30,000 t of Peaks Down, at $109/t for 30,000 t of Saraji and $114/t for 20,000 t of Goonyella.
In addition, the coking coal spot market saw active trading across various grades in China on Thursday May 6 as market participants returned after the five-day Labor Day holidays which started on Saturday May 1.
Seaborne coking coal delivered prices to China jumped 3.5% d-o-d, on robust demand and supply tightness.
Furthermore, the National Development and Reform Commission of the People’s Republic of China (NDRC) announced an indefinite suspension of all activities under China’s Australia Strategic Economic Dialogue, thereby raising questions about the market outlook on imported coals.
Price Assessments
Latest prices for the Premium HCC and the 64 Mid Vol HCC grades are assessed at around $109.00/t (+2.3% w-o-w) and $103.75/t (+1.5% w-o-w) FOB Hay Point, Australia.
For Indian buyers, these prices amount to $135.75/t (+3.8% w-o-w) and $130.50/t (+3.1% w-o-w) respectively on CNF India basis.
Australia-India dry bulk freight rate is currently assessed at $26.75/t (+10.1% w-o-w) for delivery by Panamax vessel class.
Outlook
The Indian market condition is presently deteriorating amid demand uncertainty following the uncontrolled spread of the second wave of Covid-19.
Although the country’s steel production level is steady, buyers are closely monitoring the situation and might be cautious towards procurement of spot cargoes for next few weeks.
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