Met coal likely to continue downslide through Jan

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16 January 2017

Met coal prices are expected to keep up their downward journey through January into February, atleast till China returns back from its early Feb holidays.

China’s buying saw a major churning last week amidst good supplies dipping the prices by over $8-10 per tonne reaching China. Wet weather conditions had very little impact on the Australian side mining or leading.

Majorly the prices are seen to be coming down due to good availability and reduced buying and traders see this as a temporary phenomenon which reverse around mid-February once again.

Indian buyers which KATM had mentioned last week in their report bought good cargoes in the last week at deals closing near $177-178 per tonne CFR for HCC (mid vol) grades. FOB basis price for the same grade from Australia is now available on offers at $166-168 per tonne with scope for negotiations.

Traders and Chinese mills from China and Singapore are expecting the coking coal prices going down to nearly $150 levels by mid February with $5-10 uplift thereafter and eventually heading down to $130 by mid year.