Australian coking coal prices have declined swiftly after China’s informal ban on Australian coal imports since mid-October.
Persistent oversupply concerns have been exerting tremendous downward pressure on the Australian coking coal prices with continued uncertainty over the lifting of current Chinese import restrictions on Australian coals.
Ex-Chinese buying interest for seaborne coking coal is presently limited across major markets in the Asia-Pacific region outside China despite ample material availability at steeply discounted levels.
Even as Indian end-users could benefit from the increased supply of Australian coking coal at competitive prices, most buyers are refraining from immediate procurement in hopes that offers could decline further.
Furthermore, the country’s spot demand remains moderate because there has not been any significant improvement in steel product sales that could lead to an incremental demand for imported coking coal.
India Coal Import Shipment Vessel Lineup
CoalMint’s latest vessel lineup data (as on 11th Nov’20) reveals that a total quantity of 959,000t of Australian coking coal is expected to reach various Indian ports during this month.
- 97,000t Dhamra (Odisha)
- 229,000t Gangavaram (Visakhapatnam)
- 293,000t Haldia (West Bengal)
- 285,000 Jaigarh (Maharashtra)
- 55,000 Krishnapatnam (Andhra Pradesh)
Price Assessments
Latest prices for the Premium HCC and the 64 Mid Vol HCC grades are assessed at around $101/t and $95/t FoB Hay Point, Australia.
For Indian buyers, these prices amount to $113/t and $106/t respectively on CNF India basis.
Australia-India dry bulk freight rate is currently assessed at $11.85/t for delivery by Panamax vessel class.
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By Aditya SInha
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