Posted on 13 Feb 2023
Australian fob coking coal prices surged during the week ended 10 February due to supply concerns amid wet weather and a coal train derailment in Australia.
Kallanish assessed premium hard coking coal at $370.46/tonne fob Australia, up $22.38/t from $348.08/t the previous week.
On the Singapore Exchange, Premium Coking Coal Futures for March settled at $369.33/t on Friday, soaring $29.33/t from $340/t the previous week.
No deals were heard during the week. According to traders, a bid was heard on Friday at $370/t fob for 40,000 tonnes of branded coking coal for March laycan.
"I don't see anything being available right now either with miners or with traders," says one trader. According to him, the weather event and train derailment in Australia have affected coking coal supply.
It was reported last week that the Blackwater rail corridor from Queensland's Bowen Basin to Gladstone Port was closed after a coal train derailment. Rail freight operator Aurizon told Kallanish on Friday the corridor will only reopen at the weekend.
"March is looking very tight. Cyclones threat, China demand return, Blackwater derailment and wet weather are all affecting the supply," says another trader. Due to these factors, coking coal prices will be firm for the near term, he adds.
Another trader says coking coal prices may stay high at $370-380/t fob – although capped by coke prices which are now at $450-460/t cfr India – due to supply side disruptions and concerns.
Source:Kallanish
