Australian met coal spot export prices stood rangebound this week amid thin trading activity in the Chinese market, with buyers expecting more downside for domestic coke prices.
Chinese buyers were reportedly reluctant to procure seaborne coals at prevailing price levels, especially since coke prices have started dipping as well as the prevailing uncertainty over further stringent environmental checks on steel and coke productions continue to persist.
End-users in China have a bearish outlook due to a depreciation of the Yuan against the dollar, in addition to the pressure from declining coke prices.
Besides the Yuan’s depreciation, stricter port restrictions in the northern and southern regions are not expected to loosen anytime soon and would thereby create more uncertainty in production planning for steelmakers.
At this juncture, we think that further price increases are unlikely in the near term due to the uncertainty looming over China environmental concerns and cutback talks.
Moreover, the Indian market can be assumed to remain quiet due to the onset of monsoon.
The latest import offers for the Premium Low-Vol HCC grade are assessed at around USD 199/MT FOB Australia, higher by about USD 2/MT compared with the rates in the week gone by.
Offers for the 64 Mid-Vol HCC are assessed at around USD 184.95/MT FOB Australia, higher by about USD 1.45/MT than the previous week’s rates.
Source: CoalMint Research
For Indian buyers, the above offers amount to USD 212.95/MT and USD 198.90/MT respectively on CNF India basis.
Leave a Reply