Australian Coking Coal Prices Rise

Australian Coking coal prices rise by USD 5-6/MT as China’s demand improves and US miners cut production.

Australia’s Premium hard coking coal offers are at USD 92/MT FOB Australia, Hard coking coal at USD 86-90/MT, Semi-hard coking coal at USD 80/MT and Semi-soft coking coal at USD 74/MT FOB Australia.

Freight charges stay at previous levels i.e. USD 14/MT for supramax, USD 10/MT for panamax and USD 8/MT for capesize vessel.

Until the end of next month, coking coal prices are likely to remain at current levels because Indian steelmakers demand is unexpected to pick up.

Logistics constraints during monsoons results in low imports, which is high in the first quarter for restocking by steelmakers/importers.

On one hand, demand from China has improved for building up inventory levels and on the other, miners in US cut production because of rains. Thus, European buyers reliance on Australian coal has increased.

India has imported 1.2 MnT coking coal in the first ten days of this month. 1.4 MnT is expected to arrive by the 24th and 0.5 MnT is at anchorage currently.

At Indian ports, coking coal stocks have reduced by nearly 3-4% in comparison to last week. About 3 MnT coking coal is stocked at various ports, namely, Mangalore, Krishnapatnam, Haldia, Gangavaram, Paradip and Vizag.

In May, coking coal imports to India increased by 27% and 4.2 MnT was imported in contrast to April. Imports are expected to slow down in the quarter ahead.