Aggressive bids at lower price levels have continued to exert a negative impact on global coking coal prices. “The market is already correcting from high price levels,” a major international trader commented with regard to the current market developments. “The market is optimistic for a supply improvement from May and so some downtrend has been seen lately,” another trader stated. Moreover, the news about Russia's pledge to reduce attacks on Ukraine has encouraged customers to push coking coal prices down further.
Accordingly, on March 30, bids for ex-Australia premium hard coking coal (HCCA) and premium low-volatility hard coking coal (HCCLV) with May laycan have been voiced at $400/mt FOB Australia. The suppliers, in their turn, have continued to seek higher prices in offerings. In particular, an offer for 50,000 mt of HCCLV, for May laycan, has been voiced at $472/mt FOB Australia, while it has been possible to book 35,000 mt of HCCLV at $540/mt FOB Australia. Australian material with June laycan has been offered at $550/mt FOB.
In the meantime, the latest transaction for 75,000 mt of ex-Australia premium mid-volatility hard coking coal was fixed at the end of last week at $540/mt FOB.
In China, the situation in the coking coal segment is developing similarly. While at the end of last week, ex-Russia hard coking coal offers have been heard at $315-320/mt CFR, this week, according to a reliable source, a Russian supplier has been ready to book 30,000 mt of material at $280/mt CFR China. The price for ex-Russia low-volatility pulverized coal injection (PCI) has remained almost unchanged, at $270-280/mt, with the lower end of the range having decreased over the past week by $5/mt.
Meanwhile, global coke customers have appeared to take a wait-and-see stance on the back of growing mixed sentiments in the global coking coal market. “International buyers have slowed down purchases for Chinese coke on the back of Australian coking coal tumbling. All are waiting, though the ex-China coke price is very firm and, in fact, strong,” a Chinese coke supplier stated. On balance, ex-China blast furnace (BF) coke (CSR 62%) is available at $600/mt FOB, while BF coke (CSR 64/62%) is offered at $625/mt FOB. In India, domestic coke prices have remained unchanged likewise, at INR 62,000/mt ($818/mt) ex-works.
$1 = RMB 6.35057
$1 = INR 75.7653