Slack demand keeps seaborne coking coal prices static
The seaborne hard coking coal market ended the week quietly on Friday December 6, with market participants finding it difficult to give price indications due to a lack of transactions and weak demand.
Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.
Steel First’s premium hard coking coal index for material sold cfr Jingtang stood at $150.27 per tonne on December 6, up by $0.33 from Thursday.
Premium hard coking coal prices fob DBCT Australia were calculated at $139.12 per tonne,unchanged from Thursday.
The price for hard coking coal cfr Jingtang stood at $139.24 per tonne on Friday, up $0.22 from levels seen on Thursday.
Hard coking coal fob DBCT was $124.29 per tonne, also unchanged on the day.
“It’s hard to say where the prices are because there haven’t been any transactions heard and, therefore, there is no reference,” a trading source in Beijing told Steel First.
“While the market may seem stable, you’d never know whether the next transaction is concluded in line with market expectations or at lower levels,” she added.
“We still think the market may go down further, so we will wait a while longer before making any purchases,” a mill source said.
The source added that domestic coking coal remains more competitive as mills can pay for them three to six months after delivery.
Prime hard coking coal from Liulin county in Shanxi province was reportedly quoted at 1,110 yuan ($181) per tonne ex-works, inclusive of VAT, up 10 yuan ($2) per tonne from a week ago.
A cargo of high-volatility USA origin coking coal was heard sold into Turkey at $130 per tonne cfr, levels described as “painfully low” for quality product by one European source.
The most-traded May hard coking coal futures contract on the Dalian Commodity Exchange closed at 1,112 yuan ($181) per tonne on Friday, down from Thursday’s close of 1,125 yuan ($184) per tonne.
The most-traded May coke contract on the exchange closed at 1,618 yuan ($264) per tonne, also down from the previous day’s closing price of 1,622 yuan ($265) per tonne.