Australian Coking Coal: Prices edge higher amid new bookings
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Australian premium low-volatile hard coking coal prices have moved higher this week, as several new bookings were done through sell tenders of various coal grades, alongside higher indicative bids from the spot market.
The Chinese marketplace saw the persistence of bullish sentiments in anticipation of a steady domestic metallurgical coke market. Market sources said they expect domestic coke prices to remain steady leading up to the Lunar New Year celebrations. Further, there were common expectations that the Chinese port situations will gradually ease.
Chinese domestic coking coal prices are anticipated to hold steady for Q1 2020, particularly for premium hard coking coal with low ash and sulfur from Shanxi. Shanxi Coking Coal Group, China's biggest coal producer, is expected to shortly announce its Q1 long-term price.
Meanwhile, the impending phase-one trade deal between the US and China may bode well for the American origin coal sellers.
Recently, trade-related tensions between the US and China have been considerably relaxed, following the interim trade agreement signed earlier last month. This has renewed hopes among US mining firms that China will possibly resume regular imports of US coking coal next year.
PRICE ASSESSMENTS
Latest offers for the Premium HCC grade are assessed at around USD 141.00/MT FOB Australia, higher by USD 4.87/MT than the average rate of USD 136.13/MT prevailing during the week gone by (23rd - 27th Dec'19).
Offers for the 64 Mid Vol HCC grade are assessed at around USD 122.05/MT FOB Australia.
For Indian buyers, the above offers amount to USD 154.40/MT and USD 135.45/MT respectively on CNF India basis.
Pulverized Coal Injection (PCI) & Semi Soft Coking Coal
| FOB Australia | CNF China | CNF India | |
| Low Vol PCI | 86.30 | 99.75 | 99.70 |
| Mid Tier PCI | 82.30 | 95.75 | 95.70 |
| Semi Soft | 76.05 | 89.50 | 89.45 |
N.B.: All prices are in USD/MT
