Coking Coal Offers from Australia Decline Marginally

Sluggish demand from China has led to bearish sentiments in global coking coal market. Declining Chinese domestic coal prices has added to distress.

Low buying interest from China and India – the prime buyers of Australian coking coal, has resulted in thin trading of coking coal in global market, leading to fall in prices.

Imported material prices have fallen by USD 1-2/MT W-o-W.

Australian premium HCC offers to India, one of the giant in global steel making industry, are assessed at USD 79-80/MT, FoB against USD 81-82/MT FoB last week. Whereas, Australian HCC are offered to Indian buyers at  USD 74.5-75.5/MT, FoB; down by USD  0.5-1/MT, FoB W-o-W.

A market participant associated with SteelMint predicted, “Australian coking coal trading is likely to be timid in India owing to festive mood in coming week.”

Interestingly, the global contract price, which was settled at USD 89/MT for Q4 2015, has failed to boost up Australian coking coal prices in global market.

Contract price between Australia and Japan

Prices in USD/MT FoB

According to latest assessment by SteelMint, India has already imported 2.1 MnT of coking coal in this month.