Coking Coal prices continue to decline due to the absence of buying interest. Sellers in Australia, the main export market in world, have been continuously lowering their spot prices due to the twin impact of over-supply and weak demand.
Steel makers in China have been waiting for the prices to fall down to significant levels; postponing their purchases; thus accounting for the lackluster demand.
Offers for the Premium HCC have fallen to around USD 186/MT FoB Australia, a fall of around USD 6/MT over the week-ago rates. In a similar trend, offers for the 64 Mid Vol HCC have come down to around USD 177.75/MT FoB Australia, which were lower by around USD 3.05/MT against the rates in the week last.
Source: CoalMinT Research
On CFR India basis, these offers translate into: USD 199.25/MT and USD 191/MT respectively.
In India, there also has not been much buying activity as the steel makers waited for the coal prices to come down further.
However, the coal purchases in India are expected to gain momentum towards the beginning of May’18, when the steel makers are likely to stock the coal ahead of the rainy season.
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