Posted on 18 Sep 2023
Australian fob coking coal prices surged during the week ended 14 September due to global miner BHP’s coal mine closure.
Kallanish assessed premium hard coking coal at $303.77/tonne fob Australia, up $21.11/t from $282.66/t fob the previous week.
On the Singapore Exchange, Premium Coking Coal Futures for October settled at $317/t fob on Friday, up from $285.33/t a week earlier.
According to traders, 40,000t of BHP Mitsubishi Alliance's (BMA) Australian Premium Mid Vol (PMV) Goonyella C blend for 21-31 Oct laycan traded on 13 Sept from an Indian steelmaker source at $321/t fob Australia, from Australia.
Citing globalCoal, a trader revealed the bid price for 75,000t of HCCA for October stood at $ 314.50/tonne.
A Singapore-based trader says that the BHP mine closure has really pushed up the coking coal prices. “However, so much so that coke prices are lower than coal prices. It does not seem the uptrend is sustainable,” he says.
It was reported that Resources Safety and Health Queensland (RSHQ) has suspended operations at the BMA Peak Downs coal mine after two trucking incidents. According to Australian Mining, the two incidents saw trucks slide uncontrolled for more than 100m during a night shift on the weekend of 9 September.
In a statement obtained by the ABC, BMA said it is currently completing safety checks at the site. “We are working with RSHQ and truck operations will recommence once we have completed all safety checks. Other operations are continuing as normal,” BMA said in the statement.
Meanwhile, another Singapore-based trader says that the market is very tight as the supply is weaker than normal. “BHP is not coming out with as many spot shipments as they usually do. Also demand in India and Indonesia is picking up with each passing month,” he says.
Another Singapore-based trader says buyers are holding back and reassessing the fundamentals. “Currently the spot demand is healthy but spot supply looks tight,” he adds.
Another Singapore-based trader notes that given how coking coal prices had surged, nobody would rush to buy cargoes at these levels.
Source:Kallanish
