Seaborne metallurgical coal prices have remained fairly stable over the past few days since about the middle of last week, with most Chinese buyers holding back restocking activities, although seaborne coking coal prices continue to be competitive, compared to domestic coking coal of similar specifications.
Nevertheless, the seaborne coking coal market had seen a flurry of fresh bookings done in the spot market last week, for mainly premium cargoes with forward laycan.
A lack of sustainable demand for raw materials – despite rising steel prices – in the downstream Chinese market has exerted downward pressure on prices for seaborne coking coal cargoes.
The Chinese buying interest has remained relatively low with no signs of urgent requirements heard as of late, possibly in light of the persistent uncertainties over port restrictions in North China.
Reportedly, customs authorities in Fangcheng, Guangxi China informed end-users and traders that cargo discharge would be limited during workdays, and more tests would be conducted for every 500 million tonnes of coal unloaded. Accordingly, customs clearance can be well expected to take about three months.
Market sources expect that a strong price rally is nowhere close to happening anytime soon.
PRICE ASSESSMENTS
Latest offers for the Premium HCC grade are assessed at around USD 213.25/MT FOB Australia, lower by about USD 0.85/MT than the average rate of USD 214.10/MT in the week gone by (11-15 Mar’19).
Offers for the 64 Mid Vol HCC grade are assessed at around USD 182.75/MT FOB Australia.
For Indian buyers, the above offers amount to USD 225.55/MT and USD 195.05/MT respectively on CNF India basis.
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