Australian coking coal export prices sustained their upward momentum this week, on consistently strong buying interest for August loading cargoes amidst supply tightness.
- Premium low-volatile (PLV) hard coking coal (HCC) and 64 Mid Vol HCC grades are assessed at around $176.00/tonne (t) (+5.1% week-on-week) and $156.00/t (+6.1% w-o-w) FOB Hay Point, Australia.
- For Indian buyers, these prices amount to $203.95/t (+6.2% w-o-w) and $183.95/t (+7.2% w-o-w) respectively on CNF India basis.
- Australia-India dry bulk freight rate is currently assessed at $27.95/t (+13.6% w-o-w) for delivery by Panamax vessel class.
A 75,000 t cargo of Australian HCC was traded at $176/t FoB Australia, on 14 Jun’21, with Jul’21 laycan.
Firm buying interest was seen in the Asian markets excluding China, while spot availability for premium HCC cargoes for Jul-Aug’21 deliveries remained tight.
Thus, sentiments remained bullish on healthy demand and concerns over potential supply tightness in the third quarter (Q3), with tradable levels for various premium coking coal brands, such as Peak Downs, Saraji and Goonyella, placed at elevated levels.
Indian coking coal import shipment vessel lineup
CoalMint’s latest vessel lineup data reveals that a total quantity of 2.71 million tonnes (mn t) of Australian coking coal is expected to reach various Indian ports by 30 Jun’21. The breakup is as follows:
| Ports | Quantity (t) |
| Dhamra (Odisha) | 935,148 |
| Ennore (Tamil Nadu) | 188,000 |
| Gangavaram (Visakhapatnam) | 280,162 |
| Haldia (West Bengal) | 273,430 |
| Jaigarh (Maharashtra) | 125,000 |
| Mormugao (Goa) | 315,417 |
| Mundra (Gujarat) | 165,000 |
| Paradip (Odisha) | 428,175 |
| TOTAL | 2,710,332 |
Stock positions at major ports in India
Total coking coal stocks at major Indian ports at the end of last week had increased to 6 mn t, up by 2.61% w-o-w against 5.85 mn t in the previous week.
Presently, coking coal stocks at Paradip port are at 1.76 mn t, down by 3.84% w-o-w; while inventory at Dhamra port is at 1.49 mn t, up 13.92% w-o-w.
Major Indian ports include Gangavaram, Paradip, Mundra, Vizag, Dhamra, Krishnapatnam, Kandla, Haldia, Navlakhi, Magdalla, Hazira, Karaikal, Tuticorin, Dahej, Goa, Jamnagar, Mangalore, Bhavnagar, Kakinada, Muldwaraka and Pipavav.
Outlook
Australian coking coal export prices would gradually find support as increasing demand from Japan, South Korea and India would consume the oversupply following China’s import ban on Australian coals since mid-October last year.
Market participants anticipate Australian PLV coking coal prices to rise further as supply of prompt-loading cargoes for near-term delivery remain tight.
Indian buyers are not expected to resume full-scale restocking in the near term despite the easing of lockdowns in several states, as end-users have sufficient inventory.
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