Asian seaborne hard coking coal spot prices were largely
unchanged on Wednesday March 26 amid thin trade, with rumors emerging of some
market tightness into May.
Premium hard coking coal prices edged lower, with prices for
lower grade material prices making a marginal recovery.
Hard coking coal index for material
sold on a cfr Jing tang basis was calculated at $120.95 per tone on Wednesday,
down by $0.57 from prices seen on Tuesday.
The premium hard coking coal index fob Australia's DBCT port
was $110.30, down by $0.60 from Tuesday.
The cfr hard coking coal index stood at $110.70 per tone on
Wednesday, up by $0.13 per tone. The fob value was $100.26 per tone, up by
$0.18 from Tuesday.
Credit concerns in China have made sellers more cautious as
defaults were heard more frequently.
The market outlook remains mixed. On one hand, Chinese
domestic coal producers are expected to lower their prices again in April. On
the other, slightly lower port stock levels, and a destocking process that is
near a conclusion, could prompt some buyers to return to the market.
In addition, the largest spot seller - the BHP Billiton
Mitsubishi Alliance - was heard to have tighter supply for May-laycan cargoes.
"There may be some support in prices, but the rebound
will not be amazing," a trading source said.
China imported just 3.54 million tones of coking coal in
February, down from the 5.7 million tones recorded in January, according to
Chinese customs data released on Wednesday.
The combined import volume for the first two months of 2014
was also 26.3% lower compared with the corresponding period in 2013.
The most-traded September coking coal futures contract on
the Dalian Commodity Exchange closed 1 Yuan ($0.16) per tone higher on Wednesday,
at 826 Yuan ($134) per tone.
The most-traded September coke contract closed 12 Yuan ($2)
per tone lower at 1,204 Yuan ($196) per tone.
The Yuan prices are the equivalent of cfr prices plus 17%
VAT and port charges of about 35 Yuan ($6) per tone.
