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Lack of buying interest still affecting coking coal spot prices

https://www.chemnet.com   Aug 09,2010
A still quiet steel market and lower-priced domestic coking coal are still severely limiting China's buying interest for seaborne coking coal, market sources said Friday.


Platts adjusted its Australian mid-vol HCC export price down by $1/mt to $176/mt FOB Hay Point. The Chinese and Indian import prices also lost $1/mt to
$190/mt CFR North China and $199/mt CFR Paradip.


A trader in Hong Kong Friday reported hearing slightly higher spot price offers for Australian hard coking coal than previously. This follows from a
$10/mt increase in offers from a large Russian producer at the start of the
week. "They suddenly feel the market has improved," the trader said.


A mill source in Shandong province said high quality Chinese coking coal was being offered at Yuan 1,500/mt delivered including VAT, or a CFR equivalent of $174/mt after deducting 17% VAT and Yuan 100/mt in freight. This price has been reasonably stable for the past month, moving by a maximum of around Yuan 50/mt, according to market data collected by Platts.


The mill source described the local steel market as "decreasing," with many offers and few bids.


In India, a steelmaker also painted a bleak picture of his domestic market, dismissing the idea that it had hit a bottom yet. The mill source said he had delayed some coking coal shipments in July, and has been asked by Australian producers to bring forward September shipments of hard and semi-hard coking coal.


A major coke maker was more optimistic, saying that every week sentiment was more positive. He said he would consider paying $175-185/mt FOB Australia for premium hard coking coal, although he had no immediate requirements.
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