Australian coking coal prices have recorded a slight decrease from the previous week, as global supply stabilizes. In addition, the formation of the price was influenced by the fact that the coal offers from the United States reached more moderate prices.
As raw materials became more accessible, steel producers slowed purchases and began to follow the market.
Soon, a major Australian mining company will hold auctions for the sale of 70,000-80,000 tons of coking coal for shipment in April 2023, which will determine the future direction of commodity prices. Most consumers of Australian coal, including Asia, India and Eastern Europe, are currently awaiting the outcome of the auction.
Some Indian steel producers predict that Australian coal bids will drop to the level of $330-335/ton in the near future, as there are positive bids on the market from the United States.
The market's confidence that there are enough raw materials to sell will put pressure on Australian coal prices. The outcome of the situation will be known after the auction in Australia, but most likely the prices will be lower than now.
Coking coal prices also decreased slightly in the Chinese market (CFR China) last week. As of March 13, 2023, coking coal prices were $343/ton, a level that is $2/ton lower than last week.
The activity of the Chinese market has been suppressed due to the introduction of coke import duty from April 1, 2023. Most Chinese consumers are cautious in their purchasing decisions and stay in the middle by monitoring the market situation after tariffs are applied.
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