A great deal of scepticism seen as regards the future market prospects in the steel industry has continued to weigh on the sentiments in the coking coal market. In particular, the major customers have continued to abstain from new bookings in anticipation of lower prices, while the suppliers are stepping up their efforts to delay the further price decline.
On balance, in the Australian coking coal market, the latest offer for August-laycan cargo of premium mid-volatility hard coking coal (HCCA) at $220/mt failed to entice any buyer. “There will not be a trade at such levels with such poor market,” an Asia-based trader stated. Meanwhile, a buyer has been seeking to book a cargo of premium low-volatility hard coking coal (HCCLV) at $201/mt FOB.
In the Chinese coking coal market, trading has muted likewise. Despite the negative sentiments that have been mounting lately, Russia-based coking coal suppliers have not been in a hurry to return to active bookings. “Russian coal is at a certain deadlock in China. Market is very weak however Russians do not want to accept that. Sooner or later we will see lower numbers,” a major international trader stated. As SteelOrbis has reported earlier, the latest transaction for ex-Russia Mechel's K10 coking coal was done at $211/mt CFR China in the middle of July.
Meanwhile, at Singapore Exchange (SGX) ex-Australia coking coal prices have inched down further. Accordingly, on July 26, ex-Australia coking coal prices for August contracts have settled at $222.67/mt, down $7.33/mt from the previous levels, while the prices for September contracts have decreased by $10/mt from the previous levels to $230/mt.