Coking Coal prices have dipped in the absence of stronger demand.
MODERATE DEMAND PREVAILS
Of late, the Coking Coal trading atmosphere has been moderate due to a severe storm forecasted to hit the major coal supply regions in Australia. At the same time, demand from Chinese steel makers also has been moderate, without any indication of strengthening in the near term.
In China, Coking Coal production has gone up in the country’s mines. Moreover, buying interest among buyers in that country was somewhat muted as they had sufficient Coking Coal inventories.
IMPORT OFFERS DIP
Import offers have drifted downwards due to the prevalence of moderate demand. The latest import offer for the Premium HCC is assessed slightly lower at USD 167/MT CFR India. Likewise, the recent import offer for the 64 Mid Vol HCC is also assessed marginally lower at USD 159/MT CFR India.
Source: CoalMint Research
Australian sellers have quoted these offers at: USD 156/MT and USD 148/MT respectively on FoB basis.
DEMAND TO STRENGTHEN IN INDIA
In India, Coking Coal demand is expected to rise further as Blast Furnaces in the country are running at high operating rates.
IMPORTS
Coking Coal imports into India have continued to arrive as user-industries procured constantly. During the 1-27Mar’17 period, around 3.2 MnT of Coking Coal was imported into India, data compiled by CoalMint Research shows.
Source:CoalMint Research
According to a predictive model developed by CoalMint Research, Coking Coal imports in Mar’17 could be expected at around 3.9 MnT.
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