Australian Coking Coal: Prices tumble amid limited trading of seaborne cargo

Australian hard coking coal prices - for both the premium low- and medium-volatile grades - have receded even further this week, due to the persistent bearish sentiment prevailing in Asia Pacific markets.

Chinese Market Scenario--

Notwithstanding the presence of an active demand for coking coal, Chinese market participants' buying interest has been dampened by the scarcity of import quotas as well as stringent customs clearance policies imposed at all major coal-handling ports.

In fact, several Chinese end-users had been willing to curtail their hard coking coal term contract volumes due to a lack of import quotas. There are also concerns that the issuance of import permits, specifically for Australia-originated commodities, would now take up to 11 days for shipments arriving at Chinese ports.

Nonetheless, three fresh bookings of Australian premium mid-vol cargoes, scheduled for September deliveries to China, were reportedly concluded earlier this week on Tuesday.

Indian Market Scenario--

The Indian seaborne coking coal market observed few inquiries for spot cargoes, but it is still uncertain as to when these inquiries could translate into firm transactions. No transactions were heard to be done during the current week so far.

Demand for imported coking coal is still weaker as compared to same period last year, as steel demand has not fully recovered; although production cuts have been largely withdrawn across much of the country's large-scale steel manufacturing plants.

Near-term Outlook--

China-based trader sources expect that premium hard coking coal prices would stay at current lower levels until customs policies are changed.

Indian market participants anticipate seaborne coking coal demand to eventually pick up on restocking needs, as most steel mills have now resumed normal operations and the ongoing monsoon season would end as early as next month.

PRICE ASSESSMENTS

Coking Coal

Latest offers for the Premium HCC grade are assessed at around $106.00/t FOB Australia, while offers for the 64 Mid Vol HCC grade are assessed at around $86.25/t FOB Australia.

For Indian buyers, these offers amount to $119.85/t and $100.10/t respectively on CNF India basis.

Pulverized Coal Injection (PCI) & Semi Soft Coking Coal

[Prices in US Dollar per tonne ($/t)]

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By Aditya Sinha