Bearish buyer sentiment keeps seaborne coking coal prices rangebound

Bearish sentiment among buyers who expected seaborne coking coal prices to fall further saw Steel First’s coking coal indices largely unchanged on Thursday November 14.

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Prices for premium hard coking coal cfr Jingtang were calculated at $157.62 per tonne, up by $0.24 on the day.

Premium hard coking coal prices fob DBCT (Australia) were calculated at $142.72 per tonne on Thursday, down by $0.28 from levels seen on Monday.

Hard coking coal fob DBCT was calculated at $127.65 fob per tonne, up by $0.03 per tonne on the day.

Hard coking coal prices cfr Jingtang moved lower, dropping by $0.28 to be calculated at $142.72 per tonne.

“Demand is weakening due to China’s environmental regulation and the sluggishness in the steel market,” a coking coal analyst told Steel First.

“I will not book any cargoes from Australia until they present big advantages over domestic materials,” a mill source in Jinan City said.

“I may consider placing an order for Peak Downs or Saraji if they fall in the range of $152-155 per tonne cfr China,” the source added.

Producers are maintaining offer levels for premium hard coking coals at around $160-2 per tonne but bids are creeping downward.

Two trades were heard concluded by Australian producers to Indian buyers, at $144 per tonne fob DBCT for a Panamax cargo of premium-grade material, and at $127 per tonne for a cargo of Australian hard coking coal.

The most-traded May coking coal futures contract on the Dalian Commodity Exchange closed at 1,125 yuan ($183) per tonne on Thursday, up by 2 yuan ($0.33) per tonne from a day earlier.

The most-traded May coke futures contract on the Dalian Commodity Exchange closed at 1,598 yuan ($261) per tonne on Thursday, up by 1 yuan ($0.16) from a day earlier.

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