National Australia Bank (NAB) has announced that it has reduced its 2020 price forecast for hard coking coal to $150/mt from $156/mt on FOB basis, citing weaker longer-term demand. As spot prices for hard coking coal continued to decline in September, going below $150/mt, NAB expects hard coking coal prices to average $150/mt in the December quarter.
The bank has kept its iron ore price outlook stable for both 2019 and 2020, at $93/mt and $74/mt respectively. The lower price expectation for next year is due to the fact that China’s steel production is expected to ease, reflecting the weaker economic growth profile going forward.
Meanwhile, ex-Australia iron ore prices stood at $93.6/mt CFR China on October 8.