Seaborne premium hard coking coal prices have continued to fall after the New Year break as trading activity remained muted in the China market, though restrictions at some of the country’s northern ports are easing.
Contrastingly, the 64 mid-vol coking coal prices have dipped but only marginally over the same period.
Chinese market participants still maintain their bearish outlook for now as buyers hold resistance to seaborne cargoes with ample supply of domestic materials in hand and high inventory levels at most steel mills.
Traders believe that the Chinese demand for seaborne coking coal is not expected to revive immediately unless the import offers come down further at competitive levels which might turn profitable for end-users.
Meanwhile, BHP Billiton Mitsubishi Alliance (BMA) has resumed operations – following a fatal accident on New Year’s Eve – at its Saraji open-cut metallurgical coal mine in the Bowen Basin, south-west of Mackay in Queensland, Australia.
PRICE ASSESSMENTS
Latest prices for the Premium HCC grade are assessed at around USD 209/MT FOB Australia, lower by about USD 11/MT than the closing price of USD 220/MT in the week gone by (as on 28 Dec’18).
Current prices for the 64 Mid Vol HCC grade, however, have fallen slightly to around USD 182.10/MT FOB Australia.
Source: CoalMint Research
For Indian buyers, the above offers amount to USD 221.50/MT and USD 194.60/MT respectively on CNF India basis.
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