Seaborne coking coal price slide by $15 per tonne in a week

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26 December 2016

Seaborne coking coal prices originating in Australia and reaching Chinese ports in the last week witnessed a slide of $15 per tonne in HCC Peak Downs. The assessed price of this coal on 17^th December was $ 254-255 per tonne FOB Australia while CFR China was in the range of $ 256-257 per tonne.

The current levels on week closing 24^th December registered the prices at $246-247 per tonne FOB Australia and $240-241 per tonne CFR China.

For the other categories of coal like HCC Mid Vol, the slide in the prices has been very high. Last week FOB Australia was at $235-236 per tonne while CFR China was at $244-245 per tonne. This week closing price was $202 per tonne FOB Australia and $210-211 per ton CFR China.

Coking coal arriving in India also went through the same drop.

The main reason which has brought the prices down is the extent of cheaper prices domestic coal in China. China mills are looking to consume the lower priced domestic coal while not showing much interest to the imported.

The expectation in the market is for a further drop in the prices as domestic coke and coal are expected to be available in better volumes at competitive prices.

Meanwhile, thermal coal was slightly up at $ 85.6 per tonne for RB1 grade, 6000 NAR FOB South Africa, which rose $1.4 per tonne on week closing.