Australian premium low-volatile (PLV) hard coking coal (HCC) FoB price has surged 56.5% in January so far, reaching its highest level since Mar’20.
Coking coal PLV FOB prices set to rise further for ex-Chinese markets on active buying—
Asian seaborne coking coal prices have been gaining sharply since past two weeks following spot transactions concluded at higher levels, and with higher firm bids seen in the ex-Chinese market.
Two trades for 75,000 t each of PLV HCC cargoes were concluded on Wednesday 27 Jan’21, at $155/t and $154/t FOB Australia, with early-mid March laycan.
Another spot deal for 75,000 t with early-March laycan was concluded on Tuesday 26 Jan’21 at $151/t FoB Australia.
On Monday 25 Jan’21, a 75,000 t cargo of PLV HCC, with wearly-March laycan, was traded at $146.75/t FOB Australia. Also on Monday, an 80,000 t cargo of PLV HCC, mid-March laycan, was traded at $146.50/t FOB Australia.
Rising restocking demand and buyers’ concerns over potential supply disruptions during Australia’s cyclone season are key factors behind the recent rally in prices. Competitively priced Australian cargoes relative to Atlantic coals of similar grades is also supporting prices thereof.
Several market participants attributed the recent price rally to limited offers floating in the market and robust spot demand for coking coal observed in Europe, India and South America.
Besides, spot availability of non-Australian coals had declined in the ex-China markets, and buyers had thus turned to competitively priced Australian coals for restocking.
India Coking Coal Import Shipment Vessel Lineup
CoalMint’s latest vessel lineup data (as on 25 Jan’21) reveals that a total quantity of 1,119,937 t of Australian coking coal is expected to reach various Indian ports by 7th Feb’21.
328,820 t Dhamra (Odisha)
85,000 t Ennore (Tamil Nadu)
159,583 t Gangavaram (Visakhapatnam)
165,000 t Haldia (West Bengal)
144,819 t Jaigarh (Maharashtra)
103,900 t Paradip (Odisha)
132,815 t Vizag (Andhra Pradesh)
Price Assessments
Latest prices for the Premium HCC and the 64 Mid Vol HCC grades are assessed at around $160.50/t and $137.50/t FOB Hay Point, Australia.
For Indian buyers, these prices amount to $174.80/t and $151.80/t respectively on CNF India basis.
Australia-India dry bulk freight rate is currently assessed at $14.30/t for delivery by Panamax vessel class.
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By Aditya Sinha
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