Seaborne premium low-volatile hard coking coal prices have been on a consistent downward trajectory since the latter part of last month, as offers declined in the absence of demand for seaborne materials with June-July laycan from India and Europe.
Prices in the mid-volatile hard coking coal segment have also come under pressure lately – after having held steady in the past couple of weeks – as buyers retreated from the market.
China-based traders are expecting prices to soften in the near term on sufficient supply of coking coals in the market, according to various market sources. Hence, some traders are showing willingness to negotiate with interested buyers and are trying to offload their cargoes before prices fall further.
China’s trade tensions persist with Australia
arrivals for China-bound shipments of Australian coking coal continue being delayed at customs clearance for more than a month.
It is worth mentioning in this context that during the past two months, Chinese traders reported extended inspections of Australian supplies, in addition to an unofficial ban on Australian coal vessels berthing across different ports in the country.
Nonetheless, traders are still ordering shipments from Australia for its lower prices, despite the lengthy restrictions imposed at customs.
Current Market Scenario in India
Elsewhere in the Indian market, buyers were actively seeking Australian coking coal for stocking up ahead of the monsoon season — although import demand for July-August-loading cargoes has now moderated, due to an approaching monsoon.
PRICE ASSESSMENTS
Latest offers for the Premium HCC grade are assessed at around USD 202.50/MT FOB Australia, lower by USD 1.60/MT than the average rate of USD 204.10/MT that prevailed in the week gone by (27-31 May’19).
Offers for the 64 Mid Vol HCC grade are assessed at around USD 182.70/MT FOB Australia.
For Indian buyers, the above offers amount to USD 215.75/MT and USD 195.95/MT respectively on CNF India basis.
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