Prices for Newcastle 5,500 kcal/kg NAR (net as-received)
thermal coal with typical ash of 20% drifted lower for a third consecutive
trading session on Friday to $93.25/MT for February-March delivery, as sellers
waited for demand from China to pick up.
Bidders in China were willing to pay $103-104.50/MT CFR China for March and
April-delivery shipments of higher ash Newcastle thermal coal, and $91.50-92/MT
on a FOB basis, said market sources.
Newcastle 5,500 kcal/kg NAR coal with March and April loading dates was offered
at $108/MT CFR China, which netted back to about $95/MT FOB Newcastle without
freight costs.
Chinese buying interest has so far failed to materialize for
imported cargoes after the country's Lunar New Year festival in late January,
and this is a concern to many involved in the market.
“Everyone hoped that Q2 buying interest would have started by now, but
that seems to have moved out to Q3,” said one participant in the
Asia-Pacific market.
A trader agreed, saying that buying interest from China had shifted to
May-loading cargoes. Port stockpiles are still very full,” he said by
way of explanation for China's present low demand.
Source: Platts
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