Spot seaborne metallurgical coal offers in Asia have been
scaling up over the 2 weeks. Indian buyers have shown better acceptance for the
premium HCC which could be an effect of improve iron and steel industry. Indian
market for finished goods is now looking better than last month and could have
a positive next quarter.
Currently, the Premium Low-volume material is available at
$159/MT FOB Australia with Panamax freight costs at about $16 to India. HCC 64
Mid-volume stands at $145/MT with unchanged offer prices.
Prices of both Iron ore and Billet in China have increased strongly
which is also indicating a demand improvement. Low inventory levels of coking
coal both at mills and ports have pushed up appetite for the material. Experts
are of view that the demand may remain and also gradually improve here on.
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