During the week ending February 26, export prices for Australian coking coal have dropped sharply and have been confirmed in deals on FOB basis. Market sources believe that China’s ban on Australian coal will not be lifted in the first half of 2021. At the same time, import coking coal prices in China for countries of origin other than Australia have remained at a high level.
Quotations of premium hard coking coal from Australia are calculated at $145/mt CFR China, down $17/mt from last week. Such a sharp drop is connected with the latest deal prices on FOB basis. According to sources, a deal for premium hard coking coal from Australia was done at $126/mt FOB this week, down by a minimum of $15/mt from the level seen late last week. Hard coking coal prices from Australia translate to about $127/mt CFR, down $12/mt compared to the previous week.
Meanwhile, quotations of coking coal from Canada and Russia in China are at $222/mt CFR and $190/mt CFR, up $2/mt and remaining stable, compared to February 19, respectively.
Coke prices in Tangshan are at RMB 2,700/mt ($417/mt) ex-warehouse, moving down by RMB 100/mt ($15.5/mt) compared to February 19, according to SteelOrbis’ data. During the given week, steelmakers’ inventories of coke have increased. Local coking coal prices have decreased due to sufficient supply, weakening the support for coke prices.
As of Friday, February 26, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,531.5/mt ($391.3/mt), decreasing by RMB 180/mt ($27.8/mt) or 6.6 percent compared to February 19.
$1 = RMB 6.4713