The downtrend in the Australian coking coal market has continued with traded prices sliding further amid positive expectations with regard to supply in the near future. Accordingly, today, April 25, a 35,000 mt cargo of ex-Australia low-volatility premium hard coking coal, with 11-20 June laycan, has been booked at $480/mt FOB. The price has decreased by $20/mt compared to the transaction done last week.
“Everything points to the fact that end-users are expecting a further correction from the current levels, given the anticipated supply recovery ahead in the second quarter,” a Singapore-based trader commented with regard to the recent developments in the market.
On balance, the sanctions against Russia and the consequent loss of one of the main global suppliers have failed to cause the expected rise in global coking coal prices. The reported rise in coking coal output in Australia due to the improvement of weather conditions appears to have partly offset the loss in supply. Hence, Australian coking coals suppliers are opting to accept the current prices in order to secure themselves from lower prices in the future.