Australian Coking Coal Market Largely Stable on Thin Trading

Seaborne premium hard coking coal prices edged higher by a dollar at the end of last week, while the 64 mid-vol prices leaped by about $3/mt, although Chinese buyers are still seen in a "wait-and-see mode" for a clearer market direction to emerge this week.

In addition, Chinese sources indicate that many steel mills may have presently finished replenishing their feedstock inventory and are sufficiently stocked with their near term contracts ahead of the Lunar New Year.

Meanwhile, positive changes in the yuan-dollar exchange rate could prompt the Chinese end-users to seek seaborne coking coal cargoes.

Currently, the Chinese currency is trading at its highest level against the US dollar, after witnessing its biggest one-week rise since 2005 in the week to 11 Jan'19, rising by 1.3%.

PRICE ASSESSMENTS

Latest prices for the Premium HCC grade are assessed at around USD 193/MT FOB Australia, lower by about USD 3.50/MT than the closing price of USD 196.50/MT in the previous week (as on 11 Jan'19).

Current prices for the 64 Mid Vol HCC grade are assessed at around USD 177.55/MT FOB Australia.

For Indian buyers, the above offers amount to USD 204.70/MT and USD 189.25/MT respectively on CNF India basis.

Source: CoalMint Research