Coal news and updates

Spot coking coal offers firm up marginally

December 11: Spot coking coal prices firmed up marginally on some buying support from the markets of China and India, industry sources said.

Imported hard coking coal prices hovered in the range of $113 per ton FOB India from mines in Australia.

In the domestic market, met coke prices remained unchanged over last week.

In the international markets, import prices of met coke CFR India firmed marginally to $200 per ton.

As the year draws to a close, activity on the price fixation for the first quarter (Q1) 2015 has picked up with both global coking coal miners and Indian steel mills bidding to have an edge. As per market information, main Indian importers viz, SAIL and RINL etc, are keenly awaiting the outcome of the negotiations between the Japanese steel mills and Australian coking coal miners, an industry source said.

Expectations are soaring about an imminent settlement between the Australian producers and Japanese mills. However, the discomfort of the Japanese mills with index pricing is well known and the negotiations are expected to twist with both sides trying to eke out extra benefit.

The Recent depreciation of the Australian dollar versus the US dollar by AUD 0.84 has given extra leverage to the miners to be more competitive on one hand and the Japanese mills will be pressing hard for extra discount knowing the miners have more scope for reduction.

BHP Billiton has finalised December monthly coking coal prices to its major Indian buyers Steel Authority of India and RNIL. They are reported to have offered around $114 per ton FOB for its Peak Downs coal brand, $111 per ton FOB for Goonyella, $99 per ton FOB for Gregory and $93 per ton FOB for Blackwater soft. The December prices are derived from average index values achieved in the previous month plus a multiplier for some qualities, an industry source said.

The November monthly pricing was Peak Downs - $113, Goonyella -$ 110, Gregory - $ 98, Blackwater - $ 92.5.

It is also reported that Indian steel mills have also been offered a second provisional price, higher than the index-linked numbers.

Indian mills will have to stay put with provisional pricing till the time the final settlement takes place with the Japanese mills.

The Empowered Joint Committee meeting is scheduled for December 18.