Australian hard coking coal prices continued decreasing this week as sellers lowered their offers to attract buying interest.
The premium grade, in particular, has been edging down progressively on limited deals as buyers waited on the sidelines despite adequate spot supply with May and June laycan cargoes.
Presently, the demand for both premium low-volatility (PLV) and premium mid-volatility (PMV) hard coking coal (HCC) from Asia, except China, is limited but restocking demand could be expected to emerge as prices gradually stabilize at the current price level in the ex-China market.
Earlier this week, however, the Australian PLV HCC FoB price had moved slightly higher following the conclusion of new bookings done in the premium low-volatile segment, thus indicating that end-users may show more interest once prices are attractive.
Price Assessments
Latest prices for the Premium HCC and the 64 Mid Vol HCC grades are assessed at around $110.00/t (unchanged w-o-w) and $105/t (-0.9% w-o-w) FOB Hay Point, Australia.
For Indian buyers, these prices amount to $130.95/t (+1.1% w-o-w) and $125.95/t (+0.3% w-o-w) respectively on CNF India basis.
Australia-India dry bulk freight rate is currently assessed at $20.95/t (+7.2% w-o-w) for delivery by Panamax vessel class.
Outlook
Short-term market outlook for spot buying interest from India appears bleak, as most large steel mills rely on long-term contracts while mid- and small-sized end users are seemingly well stocked for now until May or June as they booked cargoes when prices were low in early January.
Besides, Indian buyers are mostly refraining from immediate procurement of seaborne coking coal cargoes in hopes that offers could decline further.
Hence, overall demand revival for spot purchases of seaborne coking coal by Indian steel mills would likely take a while and is anticipated to start showing signs of improvement in the latter half of the next quarter at the earliest.
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