Coking Coal Offers to Sink on Resumption of Mining in Australia, Post New Year Holidays

The coal mining companies in Australia are now back to business after the New Year holidays getting over. With the resumption of mining in Australia, the supply tightness that prevailed during the immediate past is now in the path of easing.

Demand has weakened as buyers have postponed purchases as the offers were too high due to the twin impacts of tightness in supply and strong demand.As there is weak buying appetite and production has resumed, Coking Coal sellers in Australia lowered their export offers.

The current offer for the Premium HCC is reported at around USD 259.25/MT FoB Australia, which is lower by around USD 3/MT over the week-ago offer. However, there was not major change in the 64 Mid Vol HCC, which is reported to be offered at around USD 184.90/MT FoB Australia, almost unchanged at the offers in the week last.

Source: CoalMint Research

On CFR India basis, these offers translate into: USD 272.90/MT and USD 198.55/MT respectively.

In India, demand for Coking Coal will rise further as the steel makers will further expand their capacities in the future.