There has been no respite for Coking Coal buyers as the prices continued to remain at highs. Supply has gone further tight as production was temporarily suspended in an Australian Coking Coal mine.
The latest import offer of the Premium HCC is assessed at USD 261/MT CFR India. And that of the 64 Mid Vol HCC is assessed at USD 223/MT CFR India.
Source: Market Participants
Sellers in Australia have quoted the offers at: USD 250.50/MT and USD 212.50/MT respectively on FoB Australia basis.
PRICES LIKELY TO RISE FURTHER AS SUPPLY DWINDLES
Coking Coal prices are expected to rise further as mining operations have been suspended at the Appin mine in the New South Wales of Australia for about a month.
South32, a Perth-based miner, has suspended mining operations at the underground Coking Coal mine, following mechanical breakdown of a ventilation fan that substantially increased concentration of Methane Gas inside the mine.
As a consequence of the breakdown, around 500,000 tone of production will be hit, according to South32. Apparently, the supply squeeze will further raise Coking Coal prices.
GLENCORE RESTARTS COKING COAL MINE IN AUSTRALIA
Switzerland headquartered Glencore has restarted the mothballed underground Integra Coking Coal mine at the New South Wales region. Glencore had acquired the Coking Coal mine from the Brazilian mining major, Vale, last year.
The mine has been restarted in view of rising Coking Coal prices. Glencore expects production of at least 1.3 MnT from the mine in 2017.
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