Australian Coking Coal Prices Steady Amid Unclear Direction

Seaborne premium hard coking coal prices have remained mostly stable so far this week following a steep drop of about $9.5/mt since the latter part of last week, whereas the 64 mid-vol prices have been slightly correcting upwards, after tumbling by $6.5/mt over the weekend.

In China, market sources predict the downward trend to continue in the near term, due to ample supply of international cargoes ahead of the forthcoming Chinese New Year festival season, during which lower steel production rates are expected.

Meanwhile, some sources view the current seaborne coking coal prices to be viable and cost-efficient compared to domestic coals, especially considering that the Chinese coal production may face disruptions given the safety checks in place at coal mines in Shandong, Henan and Northeast China.

PRICE ASSESSMENTS

Latest prices for the Premium HCC grade are assessed at around USD 192/MT FOB Australia, lower by about USD 9/MT than the opening price of USD 201/MT in the week gone by (as on 7 Jan'19).

Current prices for the 64 Mid Vol HCC grade are assessed at around USD 174.50/MT FOB Australia.

For Indian buyers, the above offers amount to USD 203.75/MT and USD 186.25/MT respectively on CNF India basis.

Source: CoalMint Research