Surplus stock at Chinese port and over supply of domestic coal putting pressure on Australian coking coal prices.
SteelMint assessed that Australian coking coal buying in September second Week is dipping as buyers are making regular enquiries but delaying on concluding deals and looking forward to have some good discounts. Whereas, Suppliers trying to push prices up, but no reason is visible to increase prices as overall in International market buying is slow and buyers are moving slow on buying. However Australian Premium HCC (CSR-74%) is estimated at USD 152-154/MT FOB.
It is also noted that Chinese steel producers have maintained high their coking coal stock and so not in so pressure to get in to new contracts. Steel producers may go forward with discounts of USD 4-5/MT. However domestically Chinese market has surplus supply and prices are cheaper than imported coal which is also putting pressure on imported coal price. Also Chinese ports have big coal stocks, traders are also ready to sell with good discount, so they can restock the material.
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