COKING COAL DAILY: Seaborne premium cfr price edges up; fob prices flat
The seaborne premium hard coking coal cfr price edged up on Friday November 13 due to continued restrictions on Australian coal imports, while seaborne coking coal fob prices across the board remained flat, sources told Fastmarkets.
Premium hard coking coal, fob DBCT: $104.40 per tonne, unchanged
Premium hard coking coal, cfr Jingtang: $153.58 per tonne, up $0.51 per tonne
Hard coking coal, fob DBCT: $95.03 per tonne, unchanged
Hard coking coal, cfr Jingtang: $140.44 per tonne, unchanged
No transactions were heard on Friday November 13, sources told Fastmarkets.
Chinese market participants, in expectation of limited supply for seaborne premium hard coking coal material, believe the seaborne premium hard coking coal cfr price will be higher in the next batch of transactions.
One buyer source from India said the seaborne premium hard coking coal fob price was flat without the demand from Chinese steel mills.
“Indian steel mills don’t have a huge appetite in the spot market,” the buyer added.
“I think Chinese steel mills will be allowed to import Australian coal when new import quotas are released in 2021. The current restrictions on importing Australian coking coal were imposed because this year’s import quotas had been drained by the end of September,” an East Asia-based steel mill source said.
The same source added that the steel mill only uses Australian coking coal and does not import United States or Canada-origin premium hard coking coal.
“Coking coal from the US and Canada contains too much sulfur, which is not good for our blast furnaces,” the East Asia steel mill source explained.
Dalian Commodity Exchange
The most-traded January coking coal futures contract closed at 1,369 yuan ($206.75) per tonne on Friday, unchanged.
The most-traded January coke contract closed at 2,419 yuan per tonne, up by 27.50 yuan per tonne.