Intense demand emanating from vigorous stocking by Chinese steel makers ahead of the Lunar Year holidays have kept Coking Coal prices at high rates. According to some market participants, the prices have reached levels which prompted buyers to think twice before booking imports. Buying appetite is however there in the major import markets.
As the Chinese steel makers plan to resume full-fledged production after the Lunar Holidays getting over, they are stocking the coal to cater to the high consumption needs post the holidays.
Offers for the Premium HCC are reported at around USD 227.50/MT FoB Australia, which are unchanged from those reported in the week last. Similarly, there is a marginal upward change of around USD 1.15/MT of the offers for the 64 Mid Vol HCC against the last week rates; and the current offers are reported at around USD 189.50/MT FoB Australia.
Source: CoalMint Research
These offers amount to: USD 240.50/MT and USD 202.50/MT respectively on CFR India basis.
Supplies of the coal from Australia is expected to get tighter as the main coal freight rail operator, Aurizon, has decided to cut some of its rail paths due to a disagreement with the Queensland Competition Authority, and that is expected to result in the loss of around 20 MnT of coal supply annually.
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