The seaborne coking coal prices staged a decline in April 2018, as early concerns over a tropical cyclone at Queensland eased without creating any major disruption and demand remained low in the key markets, trading sources said.
According to information available with Steel Insights, the premium variety was quoted lower at $177 per ton FOB Australia on April 30, 2018 as against $196 per ton FOB Australia on March 30, 2018. Peak Down prices were quoted at $178 per ton FOB Australia on April 30, 2018 as compared to $197 per ton FOB Australia on March 30.
Overall, coking coal prices saw yet another steep fall in April as sellers dropped prices to liquidate their cargoes. The market in Asia remained weak with buyers still having bargaining power over sellers as multiple cargoes remained unsold. In China, the market was quiet with no fresh trades done, and offers were heard falling further. Steelmakers said they were interested in restocking a first tier coal, but wanted to wait when expected prices would become more stable.
The steelmakers said that while rebar and iron ore prices were strengthening on stronger demand, met coal remained weak from the excess supply available, and prices were thereby moving in a different direction to steel and iron ore.
Several trades during the month as well as feedback from market participants pointed to narrowing price spreads between first tier brands.
This was because buyers had many options at low prices, with even end-users who were not usually buyers of first tier coals or looking to procure imported coals.
In late April, however, the market saw renewed demand from Chinese buyers ahead of a long weekend. This helped the prices to find some resistance at the floor levels. Subsequently, prices registered some gains early May, primarily riding on demand from Chinese buyers.
Trading sources said that some sellers are unwilling to commit for fresh deals at the moment as they expect prices to see a correction upwards.
This story is from the May 2018 edition of Steel Insights.
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This story is from the May 2018 edition of Steel Insights.
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