Australian Coking Coal Prices Inching Lower As Bearish Market Sentiment Prevails

Seaborne metallurgical coal prices have been edging downwards over the past two weeks with no trades taking place, as most Chinese buyers refrained from actively procuring imported cargoes, on expectations of a weakening market ahead.

Market sources indicated that prices for various types of domestic coal in the Chinese market would soften.

Nevertheless, seaborne coking coal prices are competitive at present, compared to domestic coking coal of similar specifications.

In China, a typical demand pick-up post-Lunar New Year has not materialized yet this year, as China appeared to be in wait-and-see mode, which has kept spot prices relatively stabilized so far this year, in contrast to last year's sharp uptick.

Hence, coking coal supply levels remain sufficient to outweigh the limited demand appetite, which has exerted a lot of pressure on May and June forward-loading cargoes.

PRICE ASSESSMENTS

Latest offers for the Premium HCC grade are assessed at around USD 208.75/MT FOB Australia, lower by about USD 4/MT than the average rate of USD 212.75/MT in the week gone by (18-22 Mar'19).

Offers for the 64 Mid Vol HCC grade are assessed at around USD 178.25/MT FOB Australia.

For Indian buyers, the above offers amount to USD 220.95/MT and USD 190.45/MT respectively on CNF India basis.