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The derivatives market was the most affected, with the May coking coal futures contract on the Dalian Commodity Exchange closing 2.8% lower at 906 yuan ($148) per tonne on Monday. Friday’s close price was 932 yuan ($152) per tonne.
The most-traded May coke contract on the exchange also closed lower at 1,277 yuan ($208) per tonne, compared with the previous close of 1,328 yuan ($217) per tonne.
The yuan prices are the equivalent of cfr prices plus 17% VAT and port charges of about 35 yuan ($6).
On the physical market, downstream buyers were more inclined to keep their stock levels low as they continued to hold a bearish outlook for the short term. Interest for taking cargoes remained low, sources told Steel First.
Steel First’s premium hard coking coal index for material sold on a cfr Jingtang basis was calculated on February 24 at $135.83 per tonne, down by $0.04 from levels seen on Friday.
The premium hard coking coal index fob Australia’s DBCT port edged higher, pushing up by $0.12 to $126.34 per tonne.
The cfr hard coking coal index stood at $124.34 per tonne, up by $0.12 from the previous day. The fob value also climbed, increasing by $0.12, to $114.51per tonne
“Prices are not really the issue here. You have to find someone willing to buy first,” a trading source said.
Market participants speaking to Steel First considered top Australian brands tradable at $135-138 per tonne cfr China and second-tier hard coking coals at $122-126 per tonne cfr China.
A total of 5.23 million tonnes of coking coal was reportedly sitting at the Jingtang port on Monday, up from 5.15 million tonnes seen a week ago.
Rizhao port has 2.09 million tonnes of stockpiles, down from the 2.15 million tonnes recorded last Monday.