COKING COAL DAILY: Seaborne premium prices drop slightly

Seaborne premium hard coking coal prices went down slightly on Friday August 7 following the latest transactions, while market participants analyzed the possible reasons for the price decrease, Fastmarkets heard.

Fastmarkets indices
Premium hard coking coal, fob DBCT: $104.56 per tonne, down $1.35 per tonne
Premium hard coking coal, cfr Jingtang: $115.88 per tonne, down $0.50 per tonne
Hard coking coal, fob DBCT: $88.02 per tonne, unchanged
Hard coking coal, cfr Jingtang: $98.96 per tonne, unchanged

An 85,000-tonne cargo of premium mid-volatility hard coking coal, with September 16-30 laycan, was traded at $109 per tonne cfr China on Thursday August 6, with an option to replace it with another brand of premium mid-vol hard coking coal at $107.50 per tonne cfr China.

Also on Thursday, a 50,000-tonne cargo of premium mid-volatility hard coking coal, with August 25-September 3 laycan, was traded at $100 per tonne fob Australia, Fastmarkets learned today.

“Premium mid-vol hard coking coal prices in the fob market went down a bit,” a trader source in India said, which he attributed to overall weak demand. “India isn’t buying large volumes of seaborne coking coal in monsoon season,” he added.

One buyer source from East Asia mentioned that Indian steel mills had been bargaining with miners for premium mid-vol hard coking coal at $100 fob Australia.

“One reason for the decrease in the premium mid-vol hard coking coal price is rather weak demand from China, which is largely due to the country’s stringent import restrictions on coking coal,” a trader in Singapore said.

“I’m not surprised at the transaction price [of premium mid-vol hard coking coal in the cfr market]. It’s a normal price compared with the price of premium low-volatility hard coking coal, and from what I learned, buyers’ bids were at around $106 per tonne cfr China,” he said.

Dalian Commodity Exchange
The most-traded September coking coal contract closed at 1,216.50 yuan ($175.04) per tonne on Friday, down by 3 yuan per tonne.

The most-traded September coke futures contract closed at 2,072 yuan per tonne, up by 30 yuan per tonne.

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