Seaborne metallurgical coal prices have remained largely unmoved over the past week as the Chinese market has been muted again for ongoing holidays after the Golden Week celebrations, while other major Asia-Pacific markets outside China continue exhibiting subdued demand for the last several months.
Australian premium low-volatile hard coking coal prices had jumped over 8 percent from the pre-Golden Week traded levels, with the return of Chinese buyers following their week-long National Day holidays.
Chinese-delivered premium mid-volatile materials are being offered at a higher range of around US$ 165-168/mt, according to market sources.
However, spot trading in the Chinese market was thin without any fresh deals observed, while steel mills withheld from placing bids in anticipation of a lower price level.
At this juncture, China-based end-users are expected to play an active role to determine the near-term price outlook, given the absence of demand from other regions.
Meanwhile, Indian demand for spot shipments of seaborne coking coal has been dampened by the prevailing bearishness in the domestic steel sector, which has been plagued by softer prices and higher input costs on the back of muted demand growth, owing to slowdowns in automobile, manufacturing and property construction.
PRICE ASSESSMENTS
Latest offers for the Premium HCC grade are assessed at around USD 152.25/MT FOB Australia, higher by USD 1.75/MT than the closing rate of USD 147/MT prevailing during the week gone by (as on 4th Oct’19).
Offers for the 64 Mid Vol HCC grade are assessed at around USD 127.00/MT FOB Australia.
For Indian buyers, the above offers amount to USD 167.60/MT and USD 142.35/MT respectively on CNF India basis.
Pulverized Coal Injection (PCI) & Semi Soft Coking Coal
| FOB Australia | CNF China | CNF India | |
| Low Vol PCI | 90.25 | 105.00 | 106.05 |
| Mid Tier PCI | 88.25 | 103.00 | 104.05 |
| Semi Soft | 76.75 | 91.50 | 92.55 |
N.B.: All prices are in USD/MT
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