Weakening bids see spot coking coal prices into China edge down
No new spot seaborne coking coal transactions were reported to Steel First on Tuesday November 12, with only a handful of offers and bids quoted within established ranges.
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Index prices weakened on the back of lower bid levels.
Prices for premium hard coking coal cfr Jingtang were calculated down by $1.05 on the day at $158.82 per tonne. Hard coking coal prices cfr Jingtang were calculated at $143.89 per tonne, an increase of $1.34 on the day.
Premium hard coking coal prices fob DBCT (Australia) were calculated at $143.89 per tonne on Tuesday, down by $1.71 from levels seen on Monday.
Hard coking coal fob DBCT was calculated at $128.26 fob per tonne, down by $0.52 per tonne on the day.
Slack demand and high stocks weighed on the spot market. Some traders said that they did not expect any major restocking before the Chinese New Year in late January.
“There are also uncertainties, including the possible lifting of China’s 10% export tax on coal and Australia’s mineral resource rent tax, which could drag seaborne coking coal prices down further,” a coking coal trader in Beijing said.
“As spot prices for premium hard coking coal slipped, we’ve decided to hold on to the cargo we booked previously and sell it after it arrives in China,” another trader in Shanghai said.
The most-traded May coking coal contract on the Dalian Commodity Exchange closed at 1,122 yuan ($183) per tonne on Tuesday November 12, up by 6 yuan ($1) per tonne from Monday.
The most-traded May coke contract on the same exchange closed at 1,587 yuan ($259) per tonne, up by 16 yuan ($3) per tonne from Monday.