Seaborne coking coal prices in the Asian market declined due
to the withdrawal of Chinese steelmakers from the spot market on the back of
uncertainty in the steel market.
Market for Premium Low Volume material is at $160/MT (FOB
Australia) converting to $177/MT CFR India, however material of 64 Mid Volume
is at around $146/MT FOB. Freight from Australia to Indian ports is at around $17/MT on Panamax basis.
Reports claim that a trader based in Beijing said, “We are expecting domestic
miners (BHP Billiton and Xstrata) to cut prices at the end of March and early
April.” Supporting the statement, a trading source said, “Due to the
fluctuation in steel prices procurement of raw material (coking coal) is
expected to remain firm.”
Also, smaller mills in china were heard planning to cut
their inventory levels of coking coal to 7 days only due to shift of their
buying interest from seaborne market to stock available at ports.
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