China’s coking coal imports recorded a strong upward movement as consequence of expanding steel output and shrinking coal production within their own country.
Notably, China imported 4.02 MnT of coking coal in Mar’18, up 38% month on month from 2.91 MnT in Feb’18, according to customs data released on 24 Apr’18.
The country’s imports from Australia fell 8.66% to 1.34 MnT in Mar’18, but volumes from Mongolia rose 132.45% on the month to 2.26 MnT.
China produced 74 MnT of steel in Mar’18, according to the National Bureau of Statistics. Even though steel production in North China was curbed to limit winter pollution over the first quarter this year, mills in other parts of the country managed to increase their output.
Furthermore, China’s total coal production, including both thermal and coking grades, dropped to 290 MnT in Mar’18, compelling the Chinese steel makers to rely heavily on seaborne coals.
Globally, met coal traders expect the abundance of supply to be offset by robust consumption demand, majorly from China – the world’s largest metallurgical coal buyer.
Likewise in India, sellers anticipate demand growth because steel makers are expected to ramp up their purchases this month to stock the coal ahead of the monsoon season.
Offers for the Premium HCC grade have remained stable at about USD 179/MT FoB Australia, relative to the week-ago offers. Similarly, offers for the 64 Mid Vol HCC have stayed around USD 166.85/MT FoB Australia.
On CFR India basis, these offers translate into: USD 192.75/MT and USD 180.60/MT respectively.
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