India: BigMint coking coal index falls $4/t on lower bids, global cues
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BigMint's premium hard coking coal (PHCC) index was assessed at $217/tonne (t) CNF Paradip, India, as of 30 November, 2024. The index has dropped against the previous assessment on 15 November which stood at $221/t CNF India.
Weaker trade activities after active bookings seen earlier in the month after resumption of trades post Diwali holidays weighed on prices.
"We received a quote at around $217/t, CNF India for PHCC, though discussions are still under way before reaching a conclusion," said a mill source from south India.
"India's coking coal import market has been relatively silent this week amidst bid-offer disparity," highlighted traders.
Rationale:
- BigMint's coking coal index is derived using data points, i.e., trades, offers, and bids.
- One confirmed trade was recorded in this publishing window, and thus, the T1 trade category was accorded 50% weightage.
- Nine (9) firm offers, bids, and indicative prices were heard. Six (6) were taken for price calculation and given the balance 100% weightage.
Factors impacting coking coal import prices:
Australian coking coal prices remain flat -Australian coking coal PHCC prices have remained largely flat w-o-w at $203/t FOB yesterday. The Asian FOB metallurgical coal market held steady within a narrow range as market participants looked for clearer pricing signals, while the CFR China market softened.
Imported met coke offers to India range-bound - India's imported met coke prices were heard at around $260/t FOB for material from Indonesia for January laycan. However, Indonesia is not offering cargoes for December. Offers have remained range-bound in the past two weeks.
Chinese met coke prices may soften further - China's met coke market implemented a third price cut on 18 November in which major steelmakers reduced coke procurement rates by RMB 50-55/t, intensifying pressure on coking coal prices driven by subdued steelmaker purchases and declining steel prices. Sources opine another cut in early December is an imminent likelihood.
