Seaborne metallurgical coal prices in the ex-China market were unchanged April 20 as new deals were heard done at market levels, while the return of buyers in China pushed up prices for coal delivered to China. Global Platts assessed Premium Low Vol unchanged at $110.50/mt FOB Australia, and CFR China up 50 cents/mt at $222.25/mt CFR China April 20. In the spot market, new bookings were heard done April 20, leaving spot prices unchanged. A trade was done for 75,000 mt of an Australian Premium Mid Vol Goonyella coal cargo at $116.50/mt FOB Australia for the May 20-29 laycan. Another trade was done for 75,000 mt of Australian Premium Low Vol Peak Downs cargo at $111.50/mt FOB Australia for June 11-20 laycan. In China, sell side sources said that buyers were gradually returning to the spot market amid strengthening prices in domestic coking coal and coke markets. Steelmakers were also making good margins and hence had additional demand for raw materials. "There are not many choices for coal in the spot market, and with the return of these buyers, spot prices could well stay supported in the near term," a sell side source said. Industry sources also reported deals done for Russian low vol PCI at $130/mt CFR China on April 20, excluding 6% tax, for 30,000 mt with an end-May laycan. Another deal was concluded April 16 at $125/mt CFR China, excluding 6% tax, for 30,000 mt with May laycan. A tender was heard issued by a major South China steel mill seeking PCI material which could conclude this week, sources said. In the domestic coke market, the acceptance of the first round of upticks cemented market expectations that prices are bound to recover. Sell side sources were in no hurry to transact as market sentiment had turned positive in the past week. "No one knows where the market could go to in a month's time," a trader said. Meanwhile, a trade was heard done late April 16 for 30,000 mt of Japanese 64/62 CSR coke with June laycan around mid-$370s/mt CFR Southeast Asia, sources said. In India, the most competitive offer was indicated between $395-$399/mt CFR India for Japanese 62/60 coke. A bid was indicated at $345/mt CFR India for the same origin and grade of coke. Platts normalized the bid and offer down by 4.51% for Japanese origin coke, considering standard applicable duties, which are currently at 5.5%, accounting for the basic customs duty, social welfare cess and antidumping duties. After normalization, the indicative offer and bid were at $378-$382/mt CFR India and $330/mt CFR India, respectively.
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