Australian coking coal price declines are attributed to several low offers from a tender by a major Indian steelmaker. Despite these lower offers, Chinese mills are looking to acquire seaborne premium hard coking coal (PHCC) due to insufficient domestic supply.
Key Points:
- A major Indian steelmaker received several offers below $290 per tonne FOB Australia.
- The steelmaker is sourcing approximately 40,000-75,000 tonnes of PHCC with April laycan.
- The expected tender conclusion on Wednesday did not occur, leading to speculation that a final price below $280 per tonne might be announced on Thursday.
- A 40,000 tonnes HCCA Prime premium mid-volatility hard coking coal (HCC) with May 1-10 laycan at $288 per tonne FOB Australia was listed on the globalCOAL platform.
- Some Indian sources anticipate increased demand for April or May cargoes after a period of silence.
- A major Indian steelmaker is interested in 30,000 tonnes of mid-volatility HCC with coke strength after reaction (CSR) above 60% for April arrival.
- Some Chinese mill sources showed interest in PHCC due to low domestic supply, and Indian buyers are targeting prices around $250 per tonne FOB Australia.
- The article notes that the Chinese domestic coking coal market was quiet, with poor downstream demand being the main issue.
- There’s a suggestion that the demand for coking coal from downstream industries is low due to the consumption of steel products not having returned to levels seen before the pandemic.
- Coke and iron ore prices have declined, impacting steel production costs and the demand for raw materials.
- Poor demand causes steel prices to drop, leading mills to reduce production and raw materials prices to follow.
Source: Fastmarkets, AI generated
