Australian Coking Coal Prices Shoot Up Overnight over Weather Concerns in Queensland

Seaborne premium hard coking coal prices shot up by almost 3.75 percent to around US$ 215/mt on Thursday (21 Feb'19), following the announcement of an alert forecasting the approach of a second major cyclone in the north-eastern Australian state of Queensland.

Consequently, shipping facilities in the country's major coal exporting region was feared to suffer significant disruptions, especially as the vessel movements could be restricted due to strong wind strength and/or rough sea and extreme swell conditions prevailing off shore.

However, Cyclone Oma has now been downgraded to a sub-tropical low, as the storm's final tracking is located at an approximate distance of over 800 kilometers from the state capital of Brisbane, according to the latest weather updates.

But a warning remains in place from Fraser Island to the New South Wales border for damaging winds, huge swells, and abnormally high tides.

Notably, both ports of Gladstone and Brisbane are presently operational; and the cyclone watch for Queensland's southern coast has reportedly been cancelled.

PRICE ASSESSMENTS

Latest offers for the Premium HCC grade are assessed at around USD 212.50/MT FOB Australia, higher by about USD 4/MT than the opening price of USD 208.50/MT at the start of this week (as on 18 Feb '19).

Offers for the 64 Mid Vol HCC grade are assessed at around USD 182.85/MT FOB Australia.

For Indian buyers, the above offers amount to USD 223.75/MT and USD 194.10/MT respectively on CNF India basis.