Coking Coal prices have exhibited a falling trend as there was a gradual withdrawal of import demand. It is due to the mandate of the Chinese government to cut down steel production by 50% in that country during mid-Nov’17 to mid-Mar’18 for reducing atmospheric pollution sentiments of the steel makers there have turned bearish. As such, imports of the coal were lowered, leading to the demand for the coal in Australia losing momentum. Spot prices of the coal thus went lower, and the market environment indicates the prices to decline further.
The latest offer for the Premium HCC is assessed at around USD 182.25/MT FoB Australia, which is lower by around USD 7.25/MT than the week-ago offer. However, the recent offer for the 64 Mid Vol HCC is assessed steady, at around USD 153/MT FoB Australia, in comparison with the offer in the last week.
Source: CoalMint Research
For Indian buyers, these offers amount to: USD 196.95/MT and USD 166/MT respectively on CFR India basis.
In the Indian context, there is no contraction of the demand. Buyers have continued to import the coal to cater to their steel production needs.
Leave a Reply