The uptrend in the Australian coking coal market has continued to gain momentum, though sentiments regarding its sustainability have remained mixed among market players. Accordingly, some sources assume that prices have room for a further increase, up to $300/mt FOB against the backdrop of Europe's ban on coal imports from Russia which came into effect on August 10. Meanwhile, other market participants consider all the recent price moves to be just speculation rather than being based on apparent demand. “Europe has a lot of stocks now. Having known that since August they would not be able to buy, they had stocked up a lot of coal. Moreover, they are suffering losses now, so they are not producing much. So, as for me, the sustainability of the uptrend as well as its justification remain doubtful,” an Asian trader commented.
Meanwhile, one major international trader, expecting prices to move up further, decided to book a 75,000 mt cargo of an ex-Australia premium mid-volatility hard coking coal (HCCA) Moranbah North, with September 11-20 laycan at $228/mt FOB Australia, aiming to sell it in the future at higher levels. Earlier, a premium mid-volatility hard coking coal cargo was booked at $221.5/mt FOB, but for August laycan.
Other customers have been seeking to buy premium mid-volatility hard coking coal with October laycan at $220-225/mt FOB Australia, while a bid for ex-Australia premium low-volatility hard coking coal (HCCLV), with October laycan, has been heard at $225/mt FOB Australia, SteelOrbis has learned.
Meanwhile, as of August 12, ex-Australia coking coal prices at Singapore Exchange (SGX) for August contracts rose by $3.67/mt to $223.67/mt, while for September contract prices increased by $2.67/mt compared to the previous levels to $238.67/mt.