Seaborne metallurgical coal prices continued to retreat amid a lower offer seen in the premium hard coking coal segment to draw buying interest.
Global Platts assessed Premium Low Vol down $3/mt at $112.50/mt FOB Australia, and CFR China down 50 cents/mt at $218.50/mt March 15.
The spot market observed further weakness at the start of the trading week, as an offer on globalCOAL HCCLV slipped to $113/mt FOB Australia with April laycan. As prices continue to retreat, industry sources said opportunistic buyers may emerge gradually. Sell side sources said there are demand for Australian premium mid vol from India buyers, but trading activities in this segment may be slow as spot prices nudge lower.
Meanwhile, two deals were concluded in previous trading sessions. On March 12, a trade was concluded at $115/mt FOB Australia for an Australian premium low vol Peak Downs, with sellers’ option to deliver BMA PLV at the same price. This was for a 162,000 mt cargo with April 1-10 laycan. Based on a typical specification dated May 2017, BMA PLV parameters are: 72% CSR, 20% VM, 10% moisture, 10.5% Ash, 0.6% sulfur and a maximum fluidity of 400 dial division per minute.
Another trade was concluded March 13 at $115/mt FOB Australia for 40,000 mt of Peak Downs with April 18-27 laycan.
In China, market activities were thin for seaborne coking coal cargoes, as buyers were mainly seeking for non-Australian premium hard coking coal material.
"There is no lack of coals domestically with high and mid sulfur content and spot prices have retreated for this segment. However, supply of good coals with low sulfur content is limited so it is likely that a spot cargo of non-Australian premium low vol material will be well sought after," a Chinese trader said. "Trading activities are unlikely to pick up until the supply of premium materials from Canada and US improves," the trader said.
In the domestic coke market, the fifth round of price cut were proposed March 15, by Yuan 100/mt. This would bring the total price cuts by Yuan 500/mt, since the first round was proposed mid February. Market participants said they expect more downward pressure on raw materials prices amid Tangshan's short-term output.
Disclaimer: this article is from the SBB STEEL MARKET DAILY, the copyright belongs to the original author, and only represents the original author's viewpoint.
