Following a few successful sales of coking coal done to China earlier, Russian company Mechel has managed to sign new deals to the destination in question. Specifically, a fresh tender by Mechel for 21,000 mt of K10 coking coal, for prompt laycan, was closed at $307/mt CFR China, while another cargo of K10 coking coal (for the same volume) was traded at $301.30/mt CFR China. Last week, as SteelOrbis reported, a company sold coking coal to China at $305/mt CFR. Firm buying interest in China, stemming mostly from the need to restock after the easing of Covid-related restrictions, has added certain support to Russian coking coal exporters, though the latter still have to be forced to accept prices lower than from first-tier suppliers amid the unprecedented sanctions against Russia. “It would be good if we see some increase, but still the market is a bit too slow. The Russians must reduce or at least control their output. Otherwise, they will push down even China's recovery,” a major international trader stated.
Given the developments in China and Australia, coking coal prices in the regions in question continue to move in different ways. Specifically, the lingering absence of any trading has continued to exert a negative impact on Australian coking coal suppliers. “We are still trying to come out of the slump in domestic prices and are figuring out how to get rid of the massive inventory build-up. Demand has dried up. No one wants to catch a falling knife, so as to speak,” a representative of a major Indian major steel mill stated, commenting on the current situation.