Australian Coking Coal Prices Fall As Supply Outweighs Demand

Seaborne premium hard coking coal prices for ex-China markets continue to weaken since the middle of this month, although Chinese delivered prices for premium HCC have managed to hold firm over the same period.

The premium low-volatility segment of the Australian hard coking coal market seemingly appeared to be turning into a buyers' market, amid lackluster demand showing signs of strain in keeping up with a glut of coking coal supply.

Multiple sources concurred that most buyers in China have been staying away from the seaborne market, citing current price levels above $200 per tonne cfr China for premium materials.

In the meantime, however, the second-tier hard coking coal prices have trended upward for much of the previous week on fresh bookings.

Elsewhere in the Indian market, spot demand for July-August-loading cargoes of imported coking coal has now moderated, due to an approaching monsoon.

PRICE ASSESSMENTS

Latest offers for the Premium HCC grade are assessed at around USD 204.50/MT FOB Australia, lower by USD 2.80/MT than the average rate of USD 207.30/MT that prevailed in the week gone by (20-24 May'19).

Offers for the 64 Mid Vol HCC grade are assessed at around USD 186.35/MT FOB Australia.

For Indian buyers, the above offers amount to USD 217.80/MT and USD 199.65/MT respectively on CNF India basis.