Australian Coking Coal Prices Drop on Muted Trading in Sluggish Market

Seaborne premium hard coking coal prices edged down last week, as more selling interest was seen in the FOB spot market, while most buyers stayed cautious.

Realistically, Chinese end-users would not be buying seaborne cargoes until they get proper clarity on the customs clearance ban on imported coal imposed at different ports in Southern China. Moreover, there is adequate supply in the domestic market.

Although there are no urgent requirements at the moment, traders expect that there could be the usual restocking needs in the near term, adding that end-users will seek seaborne cargoes when import prices fall below $200/mt CFR China.

PRICE ASSESSMENTS

Latest prices for the Premium HCC grade are assessed at around USD 225.75/MT FOB Australia, lower by about USD 4/MT than the opening price of USD 229.75/MT in the week gone by (17-21 Dec’18).

However, current import offers for the 64 Mid Vol HCC grade have remained fairly constant throughout the month at around USD 186.50/MT FOB Australia.

For Indian buyers, the above offers amount to USD 238.40/MT and USD 199.15/MT respectively on CNF India basis.

Source: CoalMint Research