Australian Premium Low Vol coking coal prices remained range-bound over the past week, though prices for other grades plunged deeper.
Even though the current level of imported coking coal prices sold into China is quite reasonable for most buyers and end-users but the ongoing port restrictions are hindering buying activity.
As a matter of fact, this ongoing congestion at the ports had begun around last month and had intensified in recent weeks.
Stricter port restrictions, especially in south China, has left steel producers desperately scouring to find alternative ports that might allow them to berth vessels carrying their imported coking coal cargoes.
As such, transactions are getting concluded at lower levels in the ex-China market wherein sellers are heard to extend hefty concessions to liquidate their stock on hand.
Moreover, metallurgical coke prices have been falling since the start of this month and the downward momentum rubbed off on China’s domestic coking coal prices.
Furthermore, Chinese steelmakers’ coal demand has been muted amid uncertainty around production cuts of steel and coke on environmental grounds as well as stricter port restrictions.
In addition, the Indian market demand has considerably subdued due to the onset of monsoon.
Price Assessments
The latest price for the premium low vol grade is assessed at around USD 172/MT FOB Australia, down USD 1.85/MT from the average price of USD 173.85 in the previous week (23-27 Jul’18).
Latest import offers for the 64 Mid-Vol HCC grade have plummeted to as low as around USD 151.15/MT FOB Australia, lower by over USD 6/MT than the previous week’s average rate.
Source: CoalMint Research
For Indian buyers, the above offers amount to USD 185.50/MT and USD 164.65/MT respectively on CNF India basis.
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