Australian Coking Coal Spot Price Levels Drop Amid Ambiguity of China's Winter Cuts

Australian premium hard coking coal prices have been inching down gradually over the past few days, after having peaked at $223/mt FOB Australia ($239.55/mt CNF India) in the middle of this month (on 17 Oct'18).

However, hard coking coal prices have picked up by nearly about $10/mt during the same period due to supply tightness in the second-tier market.

Presently, Chinese buyers are said to be awaiting clarity on the potential for stricter winter production cuts in China.

Implementation of the winter production cuts have not started yet and most steels mills are still running at full capacity.

Stringent port restrictions in Southern and Northern China are expected to be enforced until the end of the year, as more quotas will be allocated to thermal coal cargoes in the winter.

CNF China prices may be supported to some extent in the near term as there could be restocking demand by Chinese end-users as winter approaches.

PRICE ASSESSMENTS

The latest price for the Premium HCC grade is assessed at around USD 218.25/MT FOB Australia, lower by about USD 0.70/MT than the average price of around USD 218.95/MT in the week gone by (22-26 Oct'18).

Latest import offers for the 64 Mid Vol HCC grade are assessed at around USD 193.75/MT FOB Australia, higher by about USD 3.21/MT than the average price of around USD 190.54/MT in the last week.

Source: CoalMint Research

For Indian buyers, the above offers amount to USD 233.15/MT and USD 208.65/MT respectively on CNF India basis.