Coking Coal market remains weak and Asian Coking Coal prices may move down as the Chinese buyers are reluctant on buying and expecting more discounts from traders.

China’s domestic Coking Coal inventory at ports increased as the Coal production resumes in mines. As the Steel manufacturers are less interested to book higher quantities and pay high prices, which may pull down Coking Coal prices.

International Coking Coal prices have seen a downtrend since Mar ’13. Australia premium grade hard Coking Coal (CSR 74%, Ash 10.5%) traded at USD 130-131/MT in Aug ’13, which is the lowest level of the year. The prices bounced a bit to USD 152-154/MT FOB, followed by a slight improvement in demand from Sep’13. However, this recovery of price didn’t sustain for long owing to less demand.

Traders in Australia are offering premium grade hard Coking Coal (CSR 74% Ash 10.5%) at around USD 133-135/MT and offer for China is at USD 148-150/MT CFR. Whereas, for India offers stands at around USD 150-152/MT CFR.

Asian Steel industry is struggling owing to dull demand in the market. Manufacturers are very cautious on purchasing raw materials and so they are booking limited quantities. In fact, they are not willing to pay higher prices for Coking Coal. Market experts are expecting prices either to remain stable or may lose their current levels.