Australia: Newcastle Shipments slipped by 8.4%

Australia's leading Coal exporting, Newcastle Port's Coal shipment during week ended 30 September, 2013 is down by 8.4% as compared to preceding week, port report says.

During the week under review, the port shipped around 2.7 MnT of Coal and a total of 11.5 MnT of the material has been shipped to different destinations in the month so far.

As forecasted by the Port, around 12.2 MnT of Coal including both Coking and Non-coking is expected to be shipped during the month. However, on current situation, port is estimating to ship around 11.96 MnT in September on the basis of actual shipped plus projected balance from Coal terminal.

The Port has also reported that during the week ended 30 September, 33 vessels entered the port for loading with an average waiting time of 5.21 days. However, during the preceding week around 25 vessels had entered the Port with an average waiting time of around 5.19 days.

At the end of the week, 7 vessels were loading Coal, 7 vessels were waiting to get loaded and 38 vessels were expected to reach the Port.

SteelMint assessed that Coal's demand from China and Japan has slightly improved and is offering 6,000 NAR (Kcal/Kg) Thermal Coal at USD 82-84/MT, which gained USD 2-3/MT last week and remained at the same level at the beginning of 39th week. Whereas, it is noted that offers for Australian Coking Coal slightly dropped during last week and was quoted at around USD 150-152/MT for Premium Hard Coal (VM-20.7%, CSR-74%, ASH-10.5%).

Tender Alert: Coal for SAIL - India

India: SAIL invites Global Tender for Import of Hard Coking Coal

SAIL, one of India's largest Steel manufacturers invites bid from overseas Coal producers/suppliers for supply of 300,000 MT washed/unwashed hard coking coal (size 0-50 mm) to be delivered during January 2014 to March 2014 with the first shipment to be made in January 2014.

General Conditions:

1. Established overseas Coal producers owning, managing and controlling coal mines and producing washed/unwashed hard coking coal

Or

                            

Established overseas Coal suppliers offering hard coking coal produced by overseas Coal producers, duly by a Letter of Authority of the concerned Coal producer, specifically authorizing the said Coal supplier and no one else to make an offer in response to this invitation to Bid

2. SAIL reserves the right to conclude the contract on FOB(T) or C&F (FO) or part  FOB(T) and part C&F (FO) basis and also to take the coal to any of the above stated discharge ports

3. Bidder must quote for a minimum quantity of one panamax shipment of about 75,000 MT +/- 10%

Specifications:

Ash: 8% Max

Volatile Matter: 20-32%

Important Dates:

Due Date: 12.00 hrs (IST) on 11 Nov, 2013

BMA, NSSMC settle Q4 coking coal benchmark at $152

BHP Billiton Mitsubishi Alliance (BMA) and Nippon Steel & Sumitomo Metal Corp (NSSMC) have set the fourth-quarter hard coking coal benchmark at $152 per tonne fob Australia

Current Coking Coal Market - Offer Prices

Met coal wrap: Market inches higher on resilient demand

The seaborne coking coal market continued to see small prices rises last week, supported by resilient demand from China. However there appeared to be greater caution from end-users with the softening of both downstream steel billet and HRC prices.

Platts assessed premium low-vol coals $2.50/mt higher at $166.5/mt CFR north China, when compared to the previous week, while second-tier material inched up 50 cents.

Chinese demand appeared to be strong, with slight increments in deal values and indicative bids from the northeast region. For example, a prompt cargo of premium mid-vol HCC was reported done at $164-165/mt CFR China this week. Demand was said to be particularly strong in this region, when compared to other parts of China, due to domestic supply shortages caused by floods earlier in mid-August. Some early winter restocking was said to be on the way, which partly explained continued demand.

Second-tier mid-vol coals, meanwhile, did not see significant movements with limited offers and buy-side enquiries. This was manifested in offer prices, with one supplier lowering his Canadian mid-vol HCC to low $150s/mt CFR China this week after last week’s mid-$150s/mt CFR China failed to attract firm interest.

China’s steelmakers keep on cooperating with Australian coal suppliers

Business activity in the Australian coking coal market has started falling early in the week.

Many of the players are awaiting negotiations on the Q3 benchmark, but mining companies have not voiced their desired levels so far. Chinese steelmakers are interested in buying extra volumes on spot basis. Nonetheless, most of them are not ready to pay a high price having no urgent need for the material. But exporters have managed to strengthen their positions somewhat. Quotations of high-quality material have risen by $1-2/t and are currently within the range of $150-154/t FOB.

Chinese steelmakers continue to consider the options of buying import coal, though many of them have already bought substantial amounts to replenish stocks. However, the premium quality material from Australia remains too expensive for them. Suppliers are trying to sell the material at least at $167/t CFR. Lower-quality coal can be purchased at a slightly lower price. Thus, a deal has been concluded for October shipment of mid-volatile material at $153/t FOB.