Asian seaborne hard coking coal spot market mixed amid thin trading

The Asian seaborne hard coking coal spot market saw a slight firmness in the premium segment on Thursday May 15 as the continuous lack of offers forced some buyers to raise their indicative bids.

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

Steel First's premium hard coking coal for materials sold on a cfr Jingtang basis was calculated at $124.75 per tonne, up $0.66 per tonne from Wednesday's level. The hard coking coal index inched up $0.07 to $114.21 per tonne.

Both fob Australia indices for premium hard coking coal and hard coking coal remained unchanged at $116.37 per tonne and $103.26 per tonne.

Steel mills and coking plants told Steel First they were willing to pay $124-126 per tonne cfr China for premium low-volatility Australian brands.

“There have not been a lot of offers recently because prices in China have been relatively low,” a mill source said.

On the second-tier segment, buyers kept their buying interests at $112-115 per tonne cfr China while offers are heard at around $117 per tonne.

Trades remained thin, however, with competitive domestic coal prices and weak demand repeatedly being cited as reasons for buyer reluctance.

The most-traded September coking coal futures contract on the Dalian Commodity Exchange closed at 832 yuan ($135) per tonne on Thursday, down from Wednesday’s close of 847 yuan ($137) per tonne.

The most-traded September coke contract also closed lower at 1,186 yuan ($192) per tonne, compared with the previous close of 1,199 yuan ($194) per tonne.

The yuan prices are the equivalent of cfr prices plus 17% VAT and port charges of about 35 yuan ($6) per tonne.

Recent Base Metals News

Editor's pick