Australian premium hard coking coal prices increased slightly this week with new bookings concluded in the premium low-volatile segment for June laycan.
Two June-laycan cargoes of premium mid-volatility coking coal were traded at $112.75/tonne (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 for 30,000 t of Peaks Down, $109/t for 30,000 t of Saraji and $114/t for 20,000 t of Goonyella. Prices are on FOB Australia basis.
In addition, the coking coal spot market in China saw active trading across various grades on May 6 as market participants returned after the five-day Labour Day holidays which started on May 1.
Price Assessments
Latest prices for the Premium HCC and the 64 Mid Vol HCC grades are assessed at around $114.00/t (+3.2% week-on-week) and $106.75/t (+1.9% w-o-w), FOB Hay Point, Australia.
For Indian buyers, these prices amount to $145.20/t (+7.2% w-o-w) and $137.95/t (+6.3% w-o-w) respectively on CNF India basis.
Australia-India dry bulk freight rate is currently assessed at $31.20/t (+24.8% w-o-w) for delivery by Panamax vessel class.
Outlook
Conditions of uncertainty and a bearish demand outlook currently prevail in the Indian market for seaborne coking coal in view of the devastating spread of the Covid second wave.
As a result, upside support for coking coal prices is limited, given that the worsening coronavirus situation may impact the country’s supply chains by slowing port operations.
Furthermore, narrowing coke margins and increasingly competitive domestic coals in India add to downside risks for seaborne coking coal prices.
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