Seaborne premium hard coking coal prices have further declined this week after the sharp fall last week, as inventories continued to build due to the continued lack of buying interest from end-users.
In China, there is sufficient supply from sellers, even as mining activities slow down during the winter season.
Moreover, port inventories have continued to increase on more vessel arrivals, adding downward pressure on spot prices for seaborne coking coals.
Latest prices for the Premium HCC grade are assessed at around USD 199/MT FOB Australia, lower by about USD 8.25/MT than the average price of USD 207.25/MT in the week gone by.
Current prices for the 64 Mid Vol HCC grade are assessed at around USD 177.10/MT FOB Australia.
For Indian buyers, the above offers amount to USD 211.25/MT and USD 189.35/MT respectively on CNF India basis.
This week Chinese steel prices reported decline over weak trading in domestic market and fluctuating futures. Country’s rebar and HRC export offers remained stable this week. Coking coal offers moved down this week over limited trades from China. However iron ore prices recorded increase towards the weekend.
Indian metallurgical coal imports have increased by 5.35% to 4.5 million tonnes (MnT) in Feb’19, as compared to 4.27 MnT in Jan’19, as per the latest vessel lineup data compiled by CoalMint Research.
This week Chinese steel market remained abuzz with news over reduction of VAT and Tangshan pollution alerts. HRC and rebar export offers moved up over active buying. Billet export offers also inched up this week. Coking coal offers inched up over resumption in buying from China.
Continuing macroeconomic uncertainty continues to dampen the northwest European hot-rolled coil (HRC) market.
This week Chinese steel market started on a positive note as nation’s currency Yuan appreciated against USD.This led to price gains in domestic market following increase in export offers from China.
On December 9, 2018, the merchant vessel Furness Victoria arrived at Kandla Port in Gujarat on the west coast of India. It carried about 52,000 MT of thermal coal that originated from New Zealand.