Seaborne metallurgical coal prices in the PLV category were unchanged March 30, with the latest booking done on similar levels, and as market participants await the outcome of a buy tender issued
by an Indian steelmaker.
Global Platts assessed Premium Low Vol flat at $112.5/mt FOB Australia, and CFR China down 25 cents/mt at $216.25/mt March 30.
In the spot market, prices appeared to have stabilized, market sources said. A deal concluded late March 29 at $115/mt FOB Australia for 90,000 mt of an Australian premium mid-vol Peak Downs North
with April 15-24 laycan.
Three offers were reported on the globalCOAL platform March 30, leaving some market participants to ponder on the availability of spot cargoes.
“It’s quite a sight to see three offers of various grades on the same day, and the offer prices are very conservative as well,” a Chinese trader said, adding that the offers appear to have room for
negotiation. No bids were reported, market sources said, as many await the outcome of the buy tender March 31 by an Indian steelmaker.
“With the stability [in prices] now, I’m not sure if anyone is willing to short the sell. It’s quite risky,” another international trader said. Tradable levels for an Australian premium mid vol by
market participants were indicated between $110-$116/mt FOB Australia with May laycan.
Despite the slight difference towards the buy tender outcome tomorrow, industry sources indicated a common consensus that prices may not see a major correction. “The idea of a tender is to choose
the lowest price, but they might have missed that opportunity,” a trader source said.
In China, the eighth round of price cut of Yuan 100/mt materialized March 30 in major coke producing areas in Hebei and Shandong region. This would bring the total price cuts to Yuan 800/mt since the
beginning of February. Industry sources said the point of inflection have arrived, and coke prices may be caught in an impasse as coke producers have started to resist more price cuts.
A China-based coke trader said that he expects domestic traders to start building coke stockpiles at port, and that demand will lend support to coke prices. “Traders will soon find it challenging to
buy coke with the eighth round now done,” another international coke trader said, as coke plant prepares to raise prices.
The expectations of an imminent strength in domestic coke prices have also translated into domestic coking coal, Chinese market participants said as Shanxi coal producers have raised prices by Yuan
20-30/mt due to a slower coal production amid safety inspection checks. Meanwhile, thin liquidity is observed in seaborne trades bounded for China, as sell-side awaits a firmer price direction in
domestic market.
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. |
