Australian Coking Coal: Price divergence widens amid stagnant market activity
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Seaborne metallurgical coal prices have been diverging across various grades throughout this week, with premium low-volatile prices continuing to deteriorate, but second tier medium volatile material gaining strength.
Presently, no fresh bookings were confirmed in the Asia-Pacific seaborne metallurgical coal market, while delivered prices to China remained unchanged for both grades of Australian coking coal.
China: Market Overview
In China, buying interest remained positive with the current price levels, but there were no firm deals confirmed lately, as major steel mills are reportedly waiting to ensure complete price stability before making fresh purchases.
Further, the Chinese demand continues to be hindered by the ongoing import restrictions and customs clearance delays.
The seaborne market for Australian coking coal appears to be potentially supported for the fourth quarter of this year -- because cargoes with November-December laycan will be scheduled to arrive at the Chinese ports in the New Year, when next year's import quotas become available.
India: Current Market Scenario
The Indian market has been sluggish for quite some time now, and currently there are ample supplies of premium low-volatile cargoes in the market.
PRICE ASSESSMENTS
Latest offers for the Premium HCC grade are assessed at around USD 146.75/MT FOB Australia, lower by USD 7.20/MT than the average rate of USD 153.95/MT prevailing during the week gone by (2 Sep - 6 Sep'19).
Offers for the 64 Mid Vol HCC grade are assessed at around USD 138.75/MT FOB Australia.
For Indian buyers, the above offers amount to USD 161.90/MT and USD 153.90/MT respectively on CNF India basis.
Pulverized Coal Injection (PCI) & Semi Soft Coking Coal
| FOB Australia | CNF China | CNF India | |
| Low Vol PCI | 98.25 | 113.00 | 113.40 |
| Mid Tier PCI | 96.25 | 111.00 | 111.40 |
| Semi Soft | 83.75 | 98.50 | 98.90 |
N.B.: All prices are in USD/MT
