Australian Coking Coal Price Surges

Met coal market active and showed dynamic exchange as China returns after lunar New Year holidays. 

Metallurgical coal business sector was vibrant this week as the giants China and India showed active participation in trading.

SteelMint evaluated that Premium hard coking coal from Australia was available at around USD 83-84 MT, CFR India. Prices inched up by about USD 3-4/MT. This likened to USD 77-78/MT, FoB Australia, subsequent to representing Panamax-size cargo from Australia to India around USD 6-7/MT.

Alike, cargoes of Aussie’s HCC were also heard to be available at USD 80-81/MT, CFR India. Hard coking coal prices were assessed at around USD 77-78 /MT, CFR India a week ago.

The main cause of price rise in imported material was fortifying in Chinese local business market. Numerous domestic Met coal traders representatives were still absent after Lunar New Year occasion.This lead to supply shortage of the material, compelling Chinese steelmakers to go for imported material.

As a result, Australian coking offers saw uptick in the midst of positive response in China. Prices rose globally. Indian buyers also had to go for expensive imports.

[su_quote]“Met coal business sector is peppy as plants are hoping to procure crude material to produce steel.Along with this, growing demand and tight supply due to clog at Australian load ports, because of downpour disturbances coupled with inching iron ore and steel prices contributed in increase in price”, a global exchanging source said. [/su_quote]

In the interim, SteelMint surveyed that import of coking coal to India has demonstrated a peripheral fall of 1% in Jan’16 and was evaluated at 4.1 MnT against Dec’15. However, coking coal imports to China in Jan’16 fell by about 25% M-o-M.

Qty in MnT Price- USD/MT FoB (Australian PHCC)
Prices are monthly average prices Feb’16
Imports Till latest updates
Source- SteelMint

It is to be noticed that coking coal import to India stayed same as the previous month. In the midst of centre’s extensive endeavors, import is still immense. According to latest assessment by SteelMint , India has already imported  2.8 MnT of coking coal till latest updates.