Posted on 02 Dec 2024
Seaborne coking coal prices remained range bound during the week ended 29 November due to muted activity amid the slowing economy.
Kallanish assessed premium hard coking coal at $205.05/tonne fob Australia on Friday, down $0.19/t from $205.24/t a week earlier.
On the Singapore Exchange, premium coking coal futures for December settled at $204.75/t fob, also down $0.75/t from $205.50/t a week earlier.
According to a Singapore-based trader, a Chinese steelmaker was heard to have bought 40,000t of Australian non-BHP Mitsubishi Alliance (BMA)-produced premium low-vol coal for end-December laycan from a trader at $210/t CFR South China on Tuesday.
“The demand is still weak and there is a wide gap between offers and bids,” says a Singapore-based trader. He opines that this trend may continue to year end amid weak economy. However, he notes the market may be able to see some expansion in India.
A Singapore-based representative from a Chinese steel mill says the coking coal index is stagnant due to low trades amid poor demand.
“Most end users are adjusting their blends to lower the usage of premium hard coking coal. This is to lower the overall cost,” he notes. Thus, he foresees the coking coal prices to drop soon amid slowing economy.
A China-based trader also says the market is uncertain and volatile. “The Chinese market is over supplied with coking coal. At the same time, mills might restock for Chinese New Year in December,” he notes.
He also says Chinese government’s stimulus measures have limited impacts on the coking coal market as of now.
Source:Kallanish
