Australian premium low-volatile (PLV) hard coking coal (HCC) prices have decreased moderately amid thin trading, as the Asian market saw a slow start to the week with buyers staying on the sidelines.
The Chinese market observed limited activity as buyers reassessed their plans for procuring seaborne coal cargoes, amid expectation of longer waiting time at port upon arrival and further tightening of port-related policies. While there are cargoes available, with mid- to late-June laycan, buying interests from Chinese end-users have been constrained by limited import quotas.
Meanwhile, a number of ongoing negotiations were seen in the spot market for the premium low- to medium-volatile hard coking coal and pulverized coal injection segment, as Chinese buyers who still have quota are willing to take the opportunity to restock at lower price levels than domestic coals.
Outside China, trading activities remained muted without immediate demand for spot cargoes. Indian buyers are still consuming their long-term contract (LTC) cargoes.
Market sources are predicting that the Indian spot demand for seaborne coking coal is unlikely to revive before September this year, as the monsoon season, which typically starts in June, would slow down construction projects and weaken demand for steel products, and therefore seaborne coking coal.
PRICE ASSESSMENTS
Coking Coal
Latest offers for the Premium HCC grade are assessed at around US$ 109.75/t FOB Australia, while offers for the 64 Mid Vol HCC grade are presently assessed at around US$ 90.50/t FOB Australia.
For Indian buyers, the above offers amount to US$ 119.65/t and US$ 100.40/t respectively on CNF India basis.
Pulverized Coal Injection (PCI) & Semi Soft Coking Coal
| FOB Australia | CNF China | CNF India | |
| Low Vol PCI | 69.50 | 78.50 | 79.40 |
| Mid Tier PCI | 67.00 | 76.00 | 76.90 |
| Semi Soft | 61.25 | 70.25 | 71.15 |
N.B.: All prices are in US Dollar per tonne.
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