Australian Premium HCC Offers See Subsequent Downtrend

Coking coal offers from Australia show limited scope for ascent in global market. Market participants claim no betterment in near future.

Australian Premium HCC offers have witnessed continuous downfall in past couple of months. Prices have fallen by about USD 2-3/MT in Sept’15 and are assessed at USD 82-83/MT FOB against USD 84-85/MT in Aug’15. Whereas, Australian HCC offers are offered at USD 75-76/MT FOB.

Current freight rates are assessed at about USD 9-9.5 /MT for Panamax vessels and at about USD 8.5/MT for Capesize vessels.

Landed cost of Premium HCC to Indian buyers will be around INR 9,000-9,100/MT, inclusive of all duties and clearances and HCC will cost around INR 8,250-8,350/MT (landed cost).

According SteelMint’s latest research, India has already imported 2.7 MnT of coking coal in Sep’15, which was around 4.3 MnT in Aug’15.

Grade – Australian Premium HCC
Prices in FOB (Average Monthly prices)

Contract price between Australia & Japan
Global contract price for coking coal was settled at USD 89/MT for Q4CY15 registering a decline of about 24% compared to Q1CY15. Continuously increasing production from the giant coking coal exporter, Australia, coupled with strict rules and regulation on import of coking coal from China, the major importer of coking coal, resulted into oversupply of material caused crashing of prices in global market.

Prices in FOB