Spot Coking Coal Prices in Asia-Pacific Were Either Steady or Slightly Higher

Spot coking coal prices in Asia-Pacific were either steady or slightly higher Monday depending on the coal type amid positive trends in steel and iron ore prices. 

Price moves in metallurgical coal remained limited, however, as there was little keenness to either buy or sell. Platts assessed premium low-vol HCC unchanged at $160/mt FOB Australia, and second-tier HCC $1/mt higher at $148/mt. 

With a large number of market participants away on holiday, there was little trading activity. "It's a pretty low-key market right now," an Australia-based miner said. 

Chinese market participants expressed greater optimism this week, indicating that a possible increment in prices could be expected. "Sentiment has improved," one trader said. 

Another mill cited the recent rise in Chinese billet and iron ore prices as a possible indication that coking coal prices might also go up. 

In India, Mozambique low-moisture mid-vol HCC with 65-70% coke strength after reaction but high sulfur and phosphorus was reportedly being offered at $165-170/mt, CFR China 

Merchant coke makers were still trying to discern the longer-term impact of China removing the export duty on coke, and hesitated to resupply in rawmaterials, a miner said. 

On PCI, a trader was heard offering Australian 13-14% VM, 10-11% ash at around $145/mt CFR for a January-loading Panamax cargo. One end-user said he would consider no higher than $140/mt CFR for this cargo, adding that he would seek a $2/mt discount for any such cargoes arriving during Chinese New Year. 

There was some interest in Russian high-grade anthracite fines with a North China mill indicating it would consider paying $138/mt CFR for 2-3% VM, 10-11% ash and 0.25-0.3% sulfur. 

The semi-soft market appeared somewhat stronger on talk of tightening supply in China. Logistical problems caused by the harsh winter in China and Russia were leading to supply disruptions, mostly in North-east China, sources said. 

In addition production cuts by a major Chinese semi-soft producer in Heilongjiang province in North-east China was said to be contributing to the market's tightness, a trader reported. It was unclear why the producer was curbing output. 

Indicatively, a trading source said he would consider Russian material with 35-37% VM, 6-8% ash, 10% total moisture, 0.5-0.6% sulfur, 4.5-5 CSN, 95 G-value and 18-20 Y-value at $133-135/mt CFR China. 

Meanwhile, steel futures in China trended higher Monday, with the May contract on Shanghai's rebar futures last trading at Yuan 3,963/mt as of 11:30 am (0330 GMT), up Yuan 47/mt from Friday.