Seaborne premium hard coking coal prices jumped in the FOB Australia market following fresh trade, while prices for the 64 Mid Vol grade have remained stable so far this week.
Meanwhile, metallurgical coke prices have reached record highs, mostly due to tight supply resulting from output restrictions under the impact of environmental protection in China.
Last week, the price of secondary metallurgical coke in Changzhi, Shanxi Province was raised by RMB 90/MT to RMB 2,465/MT. The price of coke in Tangshan area was raised by RMB 50/MT, and the price of secondary metallurgical coke (A<13.5, S<0.8, CSR>55, MT<8) was at RMB 2,565/MT, and the coke close to first grade (A<12.5, S<0.7, CSR>62, MT<8) was at RMB 2,650/MT. The price of coke in Liupanshui District of Guizhou province was raised by RMB 150/MT, and the price of secondary metallurgical coke was at RMB 2,700/MT.
Moreover, some coking companies have plans to increase their prices this week, likely by RMB 100-150/MT, which would be a cumulative increase of RMB 650-700/MT.
Furthermore, Shanxi Coking Coal Group raised the price of coking coal for the long term contracts by RMB 30-70/MT.
As a matter of fact, there is no in-plant inventory. Considering the current low inventory of coke enterprises, steel enterprises will have to replenish stock to normal level. So, it is expected that the coke market will be adjusted at high positions in the short term.
PRICE ASSESSMENTS
The latest price for the Premium HCC grade is assessed at around USD 189/MT FOB Australia, higher by about USD 6/MT than the average price of around USD 183/MT in the week gone by (27-31 Aug’18).
Latest import offers for the 64 Mid Vol HCC grade are assessed at around USD 167.15/MT FOB Australia.
Source: CoalMint Research
For Indian buyers, the above offers amount to USD 203.50/MT and USD 181.65/MT respectively on CNF India basis.
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