Australian Coking Coal Prices Strengthen Amid Restocking Needs in China

Seaborne premium hard coking coal prices have picked up from last Friday in concurrence with an upsurge in the Chinese domestic metallurgical coal market, while the 64 mid-vol prices were largely stable over the previous week.

In China, fresh deals were seen taking place for restocking purposes by end-users ahead of the Labor Day holiday.

Nevertheless, trading sources suggested that most of the Chinese buyers are remaining on the sidelines, adding that there is no urgent requirement from any major China-based steelmaker for Australian coking coal.

Last week, however, the Chinese market saw stronger buying interest and sentiments as buyers were heard to be actively seeking for prompt cargoes of Australian low ash hard coking coal.

This was in spite of the import restrictions imposed on seaborne coking coals at various ports in China since late January, which have prolonged the customs clearance process and effectively resulted in a longer discharge time for outbound cargoes.

Meanwhile, the Chinese steelmakers have been staying cautious against imports of excess raw materials, as domestic prices continue to weaken.

PRICE ASSESSMENTS

Latest offers for the Premium HCC grade are assessed at around USD 206.25/MT FOB Australia, higher by about USD 1.80/MT above the average rate of USD 204.45/MT prevailing in the week gone by (22-26 Apr'19).

Offers for the 64 Mid Vol HCC grade are assessed at around USD 182.15/MT FOB Australia.

For Indian buyers, the above offers amount to USD 218.50/MT and USD 194.40/MT respectively on CNF India basis.