Matt Warder GM Coal Traders! The conference is wrapping up at...

Matt Warder GM Coal Traders! The conference is wrapping up at noon and it's atravel day today, so I'll be back at the desk tomorrow for regularly scheduledprice updates after market open starting tomorrow. Biggest takeaway fromtalking to folks here thus far is that the worst is likely behind us and whilethe very near future may not improve all that much, the longer term thesis ofslightly increasing demand against a backdrop of dwindling supply remainslargely intact. That said, coking coal prices softened today, as Indian demandslowed further with the onset of the monsoon season and weaker steel marketexpectations. The Argus-assessed Australian premium low-vol FOB price droppedby $1.50/t to $189.40/t, while the second-tier price held steady at $147.80/t.Most Indian steelmakers have already completed restocking, and constructionactivity typically tapers off during the rainy season — leaving littlenear-term support for seaborne prices. Some traders now expect first-tier FOBprices to decline by another $10–15/t, citing sluggish buying interest and amuted outlook heading into summer. On a CFR India basis, premium hard cokingcoal slipped by $1.45/t to $203.30/t, while second-tier coal edged slightlyhigher to $161.70/t. But market appetite remains weak, with one mill notingthat importing met coke may now be more economical than securing fresh cokingcoal cargoes. Sellers of Australian coal, meanwhile, appear in no rush to movematerial, leading to concerns among some buyers about timing and availabilityfor specific arrival windows. The Chinese seaborne market remains flat, withlow-vol prices unchanged at $169.25/t CFR and second-tier prices steady at$149.40/t CFR north China. However, domestic prices in Shanxi fell by Yn20/t,with top-grade low-sulphur coking coal in Anze now at Yn1,230/t. Chinesetraders say seaborne cargoes remain unworkable under current conditions, withdomestic coal and coke offering better economics. Overall sentiment remainsbearish, with market participants bracing for continued softness through themonsoon months and little urgency from buyers across Asia. As we have commentedin years prior, Indian quarterly budgets open up July 1, so let's hold offdirectional judgement until that time. -MW