Australian Coking Coal: Prices leap as Chinese buyers return to market
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Australian premium low-volatile hard coking coal prices have jumped over 8 percent from the pre-Golden Week traded levels, with the return of Chinese buyers following their week-long National Day holidays.
However, spot trading in the Chinese market was thin without any fresh deals observed, while steel mills withheld from placing bids in anticipation of a lower price level.
At this juncture, China-based end-users are expected to play an active role to determine the near-term price outlook, given the absence of demand from other regions.
Meanwhile, Indian steel demand has contracted amid the ongoing slowdown in the economy.
PRICE ASSESSMENTS
Latest offers for the Premium HCC grade are assessed at around USD 148.75/MT FOB Australia, higher by USD 1.75/MT than the closing rate of USD 147/MT prevailing during the week gone by (as on 4th Oct'19).
Offers for the 64 Mid Vol HCC grade are assessed at around USD 122.75/MT FOB Australia.
For Indian buyers, the above offers amount to USD 164.55/MT and USD 138.55/MT respectively on CNF India basis.
Pulverized Coal Injection (PCI) & Semi Soft Coking Coal
| FOB Australia | CNF China | CNF India | |
| Low Vol PCI | 90.25 | 105.00 | 106.05 |
| Mid Tier PCI | 88.25 | 103.00 | 104.05 |
| Semi Soft | 76.75 | 91.50 | 92.55 |
N.B.: All prices are in USD/MT
