COKING COAL DAILY: Seaborne premium prices up on latest transaction

Seaborne premium hard coking coal prices edged up on Friday October 30 after a transaction of premium hard coking coal was done at a price slightly higher than yesterday, sources said, adding that the fob market had gained some support.

Fastmarkets indices
Premium hard coking coal, fob DBCT: $107.94 per tonne, up $0.20 per tonne
Premium hard coking coal, cfr Jingtang: $135.80 per tonne, up $0.54 per tonne
Hard coking coal, fob DBCT: $95.52 per tonne, unchanged
Hard coking coal, cfr Jingtang: $104.01 per tonne, unchanged

An 85,000-tonne cargo of premium low-volatility hard coking coal, with December 1-10 laycan, was traded at $110 per tonne fob Australia on Friday October 30, sources told Fastmarkets.

“The transaction indicated that some traders were taking a position when seaborne premium hard coking coal prices were at a relatively low level, therefore, the seaborne fob market has gained some support,” a Singapore-based trader said.

Another trader source heard that the recent two cargoes of premium low-vol hard coking coal were procured by traders from China who expect the ongoing restriction on Australian coking coal to be loosened next January, when import quotas for 2021 are allocated to end users.

“Whether it will be allowed to import Australian coal remains uncertain though,” the trader source said.

One buyer source from India said that Indian steel mills were willing to pay around $107.50 per tonne fob Australia for premium low-vol hard coking coal and would pay around $105.50 per tonne fob Australia for premium mid-vol material.

“Buyers from India are likely to procure some seaborne materials today,” the buyer predicted.

Dalian Commodity Exchange
The most-traded February coking coal futures contract closed at 1,322 yuan ($196.86) per tonne on Friday, down by 0.50 yuan per tonne.

The most-traded January coke contract closed at 2,189 yuan per tonne, up by 19.50 yuan per tonne.

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– Near-term price outlook.

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