COKING COAL DAILY: Seaborne premium prices down on bearish sentiment

Seaborne premium prices decreased on Friday July 17 due to bearish sentiment in the market, sources said.

Fastmarkets indices
Premium hard coking coal, fob DBCT: $107.50 per tonne, down $1.72 per tonne
Premium hard coking coal, cfr Jingtang: $117.61 per tonne, down $0.35 per tonne
Hard coking coal, fob DBCT: $89.09 per tonne, down $2.24 per tonne
Hard coking coal, cfr Jingtang: $100.02 per tonne, down $1.40 per tonne

A buyer source indicated that China’s import restrictions were not likely to be relaxed in the second half of 2020 and as a result, premium hard coking coal prices could drop further.

“Today a miner offered its August-laycan premium hard coking coal at $113 per tonne cfr China, while buyers’ acceptable prices were at $110 per tonne cfr China,” he said.

A buyer source from East Asia, however, held that premium hard coking coal prices had reached bottom levels by now.

“With ex-China demand picking up gradually, seaborne premium prices will be supported and go up, unless the Covid-19 cases go uncontrolled again,” he said.

Two traders based in Singapore as well as a buyer source from India all believed that seaborne prices were weakening and China’s import quotas on coking coal had been a key factor behind the recent slide in prices.

A trader source from China remained cautious, however.

“Miners don’t have much premium hard coking coal material and end users from China can’t purchase seaborne materials due to import restrictions. The market is in low liquidity,” he said.

Dalian Commodity Exchange
The most-traded September coking coal contract closed at 1,210.50 yuan ($173.07) per tonne on Friday, up by 8.50 yuan per tonne.

The most-traded September coke futures contract closed at 1,943 yuan per tonne, up by 41 yuan per tonne.





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