Hard coking coal prices continue to surge; market sentiments bullish on account of strengthening steel market. Prices again moved up by USD 2-3/MT.
The export price for coking coal from Australia was assessed USD 2-3/MT higher than price accomplished for the same grade a week ago. Australian coking coal costs climbed up for the current week because of contracted domestic supply in China and surging Chinese steel production. Vigorous Chinese demand for imported material supported price rise globally.
Coking coal offers grew diagonally over all segments. Australian PHCC grew by USD 4-5/MT and HCC prices inched up by USD 1-2/MT in a week’s opportunity.
SteelMint studied that Premium hard coking coal from Australia was opened at around USD 99-100/MT, CFR India. This equated to USD 92-93/MT, FoB Australia, delineating Panamax-size vessel from Australia to India at around USD 7-8/MT.
Further, vessels of Australian HCC were in likeway heard to be accessible at USD 86-87/MT, CFR India. Hard coking coal prices were reviewed at around USD 79-80/MT, FoB for Panamax vessel, witnessing a marginal change.
[su_quote] A Chinese dealer advised to SteelMint, “Prices of raw material are on higher note in the midst of the present surge in demand due to constrained domestic supply and steel mills are all the more eager to restock.”[/su_quote]
Earlier, it was reported that an aggregate of 200 collieries have been requested to stop in China, at least for the month by issuing a notice by the government and the halt will decrease the supply of domestic Met coal in Chinese market about 12 MnT in Apr’16; probable reason for supply shortage.
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