Seaborne coking coal prices mostly steady as China returns from break

The Asian seaborne hard coking coal spot market was mostly stable on Friday February 7 as China came back online from the week-long Chinese New Year holiday.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

Market sentiment, however, remains bearish with most participants adopting a wait-and-see approach.

Steel First’s Premium Hard Coking Coal Index was calculated at $138.44 per tonne cfr Jingtang on Friday, down from $139.18 per tonne cfr a day earlier.

Premium hard coking coal prices on an fob DBCT Australia basis was calculated at $128.59 per tonne, down slightly from $128.89 per tonne on Thursday.

The price for hard coking coal sold on a cfr Jingtang basis stood at $127.13 per tonne, down from $127.40 per tonne the previous day. The fob Australia index for the material stood at $116.19 per tonne, up from $115.05 per tonne on Thursday.

Chinese domestic coal producers including Shanxi Coking Coal, Lu’An Group, and Yankuang Group have all lowered prices for their metallurgical coal products by 30-50 yuan ($5-8) per tonne.

While several coking plants in Hebei Province have cut their purchasing prices for coking coal by about 40 yuan ($7) per tonne, Rizhao Steel was heard to have lowered its purchasing price for coke by 60 yuan ($10) per tonne.

The most-traded coking coal futures contract on the Dalian Commodity Exchange closed at 911 yuan ($149) per tonne on Friday, down from the previous close of 928 yuan ($152) per tonne on Thursday January 30. The most-traded coke contract on the same exchange closed at 1,327 yuan ($217) per tonne, also down from the previous close of 1,350 yuan ($221) per tonne.

Separately, the BHP Billiton Mitsubishi Alliance (BMA) was heard to have offered Nippon Steel & Sumitomo Metal Corp a March price of $136 per tonne fob Australia for its Peak Downs and Saraji products. The Japanese mill was said to have put in its bid at $135 per tonne fob.

The BMA has also decided to cut around 230 jobs at the Saraji mine, saying its “workforce numbers were greater than required to efficiently operate the mine”.

What to read next
China’s National Development and Reform Commission (NDRC) will work with relevant parties to regulate crude steel production, with a focus on energy saving and reducing carbon emissions. It will also release guidance on crude steel output for different steel mills later this year after a national investigation on steel capacity
The low-carbon aluminium differential in the US made its first move on Friday April 5 since Fastmarkets launched it five months ago.
Fastmarkets proposes to amend the specifications of five of its steel products assessments and billet index originating from the Black Sea basin.
Fastmarkets launched a suite of CIF India aluminium scrap prices on Wednesday April 17.
China's stainless steel prices saw a notable increase last week, driven by global sanctions affecting nickel, which is a key component
German copper producer Aurubis is among the least likely to consider reducing capacity despite record low treatment charges (TCs), according to its chief executive officer