Aggressive purchases by Chinese steel makers have continued pushing up prices of Coking Coal in Australia.
Prices of the coal have gained upward momentum also from purchases by steel producers in other countries as well, including the Indian steel mills.
Recently, the offer for the Premium HCC is assessed higher by USD 10.25/MT, at USD 178.50/MT FoB , than the week-ago offer. The latest offer for the 64 Mid Vol HCC is assessed at USD 155.40/MT FoB Australia, up by USD 5.7/MT over the offer in the week last.
Source: CoalMint Research
For Indian buyers, these offers translate to: USD 189.60/MT and USD 166.50/MT respectively on CFR India basis.
In the meantime, Russian Coking Coal producer—Kolmar Coal Mining Company—plans to introduce a new variety of Coking Coal with its existing Deni Creek brand, mined in South Yakutia. Deni Creek is a low volatile HCC with specifications: 21-23% Volatile Matter, 0.4% Sulphur.
The first trial shipment of 15,000 MT will be dispatched within this month, to China.
The company is planning to produce around 1 MnT of the coal in 2017, and then ramp up the production to 3-4 MnT in 2018.
In India, the demand for the coal has remained strong due to the active steel production.
IMPORTS
Coking Coal imports in India have been strong as the steel makers imported the coal on a continuous basis. During the 1-24July’17 period, around 3.3 MnT of Coking Coal was imported in India, data collected by CoalMint Research shows.
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