Australian premium HCC FOB prices remained stable at $444.50/tonne (t) w-o-w but were up $4/t up from two weeks ago.
The Australian coking coal market is in a stalemate. In the international market, offers were absent for the spot premium hard coking coal due to its limited availability.
Many buyers from India are still reluctant to purchase fresh cargoes at current prices while sellers are in no rush to sell at lower prices. However, some end-users have limited choice but to import the coal at current prices to keep their plants operational.
However, sources informed CoalMint that a major Indian end-user has floated a tender to buy high premium coking coal FOB Australia, on a fixed price basis. The tender is expected to close on 3 Feb’22.
Coking coal prices did not go down despite the stalemate in the market because of limited supply.
Supplies from Australia continue to remain constrained due to heavy rains.
“I am not sure if suppliers would be able to offer spot March or April laycan cargoes in the coming days,” an international trader said.
Supply constraints from the US
This week, the average prices of the high-vol HCC A coking coal from the USA were at $400/t, with no change seen from last week. Meanwhile, supply constraints from USA persisted.
The supply situation is going to ease with the reopening of Baltimore’s CSX Curtis Bay terminal from early February. However, only Supramax vessel loading will be allowed.
In China, limited trading activity was observed as some market participants retreated ahead of the Lunar New Year holidays.
Sources from China told CoalMint that steel mills have completed their procurements and they may only be back in the market in mid-February.
Outlook
A clearer price direction will emerge only after the Chinese New Year holidays and the weather situation improves in Australia.
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