Premium hard coking coal at $278.33/t in Australia is down $17.32/t from $295.65/t the previous week.
Singapore Coking May Futures premium coal on Thursday closed at $285 per ton. This is up from the April settlement price of $302.33/t a week earlier.
According to a trader, on April 5, BHP sold 25,000 tons of Goonyella/Goonyella C/Riverside on May 15-24 at a price of 290/287/$287 fob. According to the trader, this was not a separate transaction and the balance was most likely indexed or supplemented with other materials.
Meanwhile, a Chinese steel mill bought 80,000 tons of Peak Downs/Saraji for sale May 1-10 at a price of $307 per ton in China from a trader on April 4th.
Referring to globalCOAL, the trader reports that on April 6, the asking price for 35,000 tons of hard coking coal for the May contract was $298 per ton.
“The market is weak because of the best supply,” says the trader. He does not think the recent correction will spur imports of Chinese coking coal from Australia, as demand is mainly driven by steel demand and steel prices, which are currently not supporting.
“The market seems to be changing its physical position "China's emphasis on self-confidence could mean a further increase in domestic production, further dampening sentiment," another trader said. He foresees coking coal prices to remain low in the next two weeks due to increased availability.
“I think the bad sentiment on coking coal was driven by weak coke and steel markets,” says another trader. He also notes that demand for coking coal in China is weak as buyers need more time to increase consumption.
Another trader also points out that BHP coking coal production is now very strong, which has led to lower prices for coking coal. “Demand for coking coal is stable. However, the downtrend is likely to continue as supply improves,” he adds.
“I think most steel mills are not buying coking coal right now. The market is looking for cheap coal,” says a Malaysian steel mill source. He also notes that the selling price of medium quality coking coal from East Malaysia is currently $210.
