Seaborne coking coal prices have been on an upward trend over the past five weeks after rebounding in the end of April, with the resumption of full-fledged steel production in China – the world’s largest steelmaking country as well as one of the biggest importers of metallurgical coal in the world.
In particular, blast furnace utilization rates in northern China have been surging since the end of the winter caps in mid-March, with steel mills resuming normal production rates post winter curtailments.
Consequently, the major commodity exchanges across the globe were heard to have witnessed a resurgence of firmer and stronger demand for the two key steelmaking raw materials, iron ore and coking coal.
Coking coal prices are projected to increase further depending on the sustainability of Chinese buyers’ strengthening demand for imported premium hard coking coal. Additionally, supply disruption in Australia due to ongoing logistical issues persisting in the Queensland coal belt area is likely to prevent any near-term downward correction in coking coal prices.
PRICING TREND
The latest offers for the Premium Low-Vol HCC grade are assessed at around USD 197/MT FOB Australia, higher by USD 14/MT from the preceding week.
Offers for the 64 Mid-Vol HCC have gone up to around USD 177.15/MT FOB Australia, up by about USD 6/MT from the previous week’s rates.
On CFR India basis, these offers translate into USD 210.70/MT and USD 190.85/MT respectively.
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