Australian Coking Coal FOB offers remain on ground in view of demand shortage in market and persistence of gap between bid and offers making difficult to materialize deals.
Australian miners are pushing their prices upwards but high inventory with Chinese steel producers is making them stiff to move forward and to book quantities on seller’s price and terms. However, it’s noted that quantities for June shipments are limited and miners are not willing to lower the prices further. On the other hand, miners are looking forward to bag long term contracts which will also help them to set spot sales offer.
As no firm demand is visible from Chinese market, exporters are bit positive on selling material to other buyers such as India & Europe. Miners are selling low volatile hard Coal at USD 113-115/MT FOB to Indian & European customers, which is a bit higher than selling to China prices.
The PCI’s Coal segment has seen no changes and prices for low volatile Coal are varying between USD 110-112/MT CFR China.
Coking Coal inventory at China has moved up. During April, Coking Coal imports increased by around 73.5% to 6.5 MnT than previous month. In view of further buying Chinese domestic Coking Coal prices are lower than international prices as buyers prefer to procure from domestic market rather than going into international market.
In domestic market, buyers are getting low volatile hard Coking Coal at USD 120-125/MT, including 17% VAT, whereas Australian offers for Premium grade Coking Coal are at around USD 128-130/MT CFR China.
Leave a Reply