Posted on 27 May 2024
Australian fob coking coal rose during the week ended 24 May as China's stimulus plan boosted market sentiment.
Kallanish assessed premium hard coking coal at $251.02/tonne fob Australia, up $3.8/t from $247.22/t fob the previous week.
On the Singapore Exchange, Premium Coking Coal Futures for June settled at $252/t fob on Friday, rising $9/t from $243/t fob a week earlier.
According to traders, a deal was heard done at $248/t fob for 40,000t of HCCA branded coke for July laycan on Tuesday.
On Wednesday, a trader was heard to be selling 30,000t of Illawarra coal for 10-19 June laycan to a northeast Asian steel mill. The traded price was reported as $235/t fob with an additional freight cost being under negotiation.
The same day, a trader sold 75,000t of Moranbah North for June laycan to an Indonesian buyer at 100% PLV index.
“The market is driven by a combination of events. The Dalian Commodity Exchange (DCE) futures are going up. Mills have started reporting profits again,” says a Singapore-based trader. He is conservatively more bullish than bearish now that the China real estate market is being stimulated and steel prices seem to be picking up.
Another Singapore-based trader also says China’s stimulus measures might have boosted sentiment. He notes that Chinese coal markets may be stable due to the rebound of steel product consumption.
However, he opines that the seaborne market will remain weak as Indians may not be keen to buy recently as the monsoon is coming. “There are some spot cargoes to sell in the market, buyers don't have strong procurement interest,” he adds.
Another Singapore-based trader also opines that the market should cool down a bit as there are enough cargos in the market.
Source:Kallanish
