Australian Coking Coal Prices Decline amid Lackluster Buying Activity in China

Seaborne premium hard coking coal prices edged marginally downwards in this week, as the Chinese market demand weakened with buyers holding back restocking activity supposedly owing to prolonged uncertainty concerning stricter port restrictions for Australian cargoes.

Reportedly, customs authorities in Fangcheng, Guangxi China informed end-users and traders that cargo discharge would be limited during workdays, and more tests would be conducted for every 500 million tonnes of coal unloaded. Accordingly, customs clearance can be well expected to take about three months.

Similarly, buying interest from the Indian market appears to have considerably slowed down this week, as the current price levels are being considered unreasonable by most steelmakers given their prevalent stock levels.

Market sources have indicated that buyers are preferring to buy seaborne coking coal on a floating basis rather than fixed prices, with the expectation that prices may continue their downward trend in the near term.

PRICE ASSESSMENTS

Latest offers for the Premium HCC grade are assessed at around USD 215.25/MT FOB Australia, lower by about USD 1.30/MT than the average rate of USD 213.95/MT in the week gone by (4-8 Mar'19).

Offers for the 64 Mid Vol HCC grade are assessed at around USD 183.50/MT FOB Australia.

For Indian buyers, the above offers amount to USD 227.45/MT and USD 195.70/MT respectively on CNF India basis.