The Coking Coal market is moving along the expected lines. Downfall in the prices continues to persist as supply is uninterrupted and is in excess of the prevailing demand.
OFFERS MOVE FURTHER DOWN
International Coking Coal offers have moved further down as supply in Australia became ample, exceeding the moderate export demand.
Lower steel production in China has shrunk the demand for Coking Coal imports in that country. At the same time, the steel mills in that country were stocked with the coal inventories, loosening the import demand.
Coking Coal production in Canada, USA and Russia is also going up, compounding to the excess supply situation, pulling down the prices.
The latest offer for the Premium HCC is assessed lower by USD 12/MT, at USD 156/MT FoB Australia, than the rate assessed the week last. At the same time, the recent offer for the 64 Mid Vol HCC is assessed marginally lower at USD 146/MT FoB Australia, down by USD 2/MT from the week-ago rate.
Source: CoalMint Research
For Indian buyers, these offers translate into: USD 166/MT and USD 156/MT on CFR India basis.
Communications with reputed market participants revealed that Coking Coal offers from Canada were at around USD 150/MT FoB.
IMPORTS
Coking Coal imports have continued landing at Indian ports due to strong demand. During the 1-22May’17 period, 2.9 MnT of the coal was imported into the country, data collected by CoalMint Research shows.
Leave a Reply