Trades conclude within established ranges in Asian seaborne met coal market

The Asian seaborne metallurgical coal spot market was largely stable on Friday November 14 with transactions heard concluded at established levels.

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Steel First’s cfr Jingtang premium hard coking coal index was calculated at $122.12 per tonne, up $0.34 on the day. The cfr Jingtang hard coking coal index was down $0.43 at $110.59 per tonne.

The fob Australia indices were unchanged at $112.79 per tonne for premium hard coking coal and $100.52 per tonne for hard coking coal.

A number of semi-hard coking coal and pulverised coal injection (PCI) materials have also been traded into China and other Asian markets, sources told Steel First.

Participants said buyers were generally not in a rush to book cargoes as market outlook remains stable and offers were above expectations, but pockets of demand are there.

“I think the market will continue to move within a $3-range in the near term,” a mill source said.

Chinese main ports reportedly held 6.17 million tonnes of coking coal on Friday, up from 6.16 million tonnes last Friday. Inventories at Jingtang port, however, fell to $1.56 million tonnes, compared with 1.68 million tonnes a week ago.

On the possible cut in coal export tax, most sources maintained a cautious stance, pending an official announcement. Japan and South Korea are speculated to benefit from cheaper Chinese materials and potential access to Mongolian coking coal.

On the Dalian Commodity Exchange, the most-traded May coking coal futures contract closed at 769 yuan ($125) per tonne on Friday, down from Thursday’s close of 771 yuan ($125.40) per tonne. The most-traded January coke futures contract also closed marginally lower at 1,064 yuan ($173) per tonne, compared with the previous day’s close of 1,068 yuan ($174) per tonne.

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