Australian Coking Coal Prices go Down

Australian Coking coal prices have taken a reverse trend and started weakening again, but market participants see limited downside from here.

Premium Hard coking coal prices are at USD 83-84/MT FOB Australia, Hard coking coal at USD 77-78/MT FOB Australia, Semi-hard coking coal at USD 75-76/MT FOB Australia and Semi-soft coking coal at USD 70-71/MT FOB Australia.

Current freight rates are USD 14/MT for Supramax vessels, USD 10/MT for Panamax vessels and USD 7/MT for Capesize vessels. Freight rates remain almost same in comparison to last week.

3.3 MnT Coking coal imported in Apr’15 is expected to rise to nearly 4.4 MnT in May’15. Demand for Coal in steel industry is directly linked to the rate at which steel production takes place. Presently, there isn’t much improvement in domestic steel output.

Imports of Coking coal are happening to either take care of the regular production requirements or of the reduced production. To keep working capital in the system, a few of the miners are producing in certain limits and selling them off by bearing some loses.

BHP Billiton has dropped the idea of expansion plans in Coal and is focusing on other commodities because of falling prices and low demand.