good and bad here. from today's stoc kheadQueensland coking coal...

good and bad here. from today's stoc khead
Queensland coking coal price slips in weak market

Prices for hard coking coal shipped from ports in Queensland, Australia, slipped $US10 per tonne on week to $US119.20 per tonne, according to Metal Bulletin.

Spot shipments of premium grade Queensland hard coking coal were offered at $128.50 per tonne free-on-board basis, according to market reports.

“Offer prices for March shipment cargoes of premium hard coking coal in the FOB market are decreasing and end users are in no hurry to give bids,” a trader told Metal Bulletin.

Futures prices for Australian coking coal were trading at $US133.80 per tonne for April settlement, and at $SU139.20 per tonne for June, according to the Singapore Exchange.

For December 2020 and January 2021 futures contracts, prices were steady at $SU150 per tonne and $US153 per tonne, respectively

This slight premium to spot prices may indicate the futures market is not expecting much material change in demand and supply dynamics for Australian coking coal.

Chinese buyers appear to have pivoted to North American supplies of hard coking coal amid ongoing uncertainty about the import status of Australian coal destined for China.

Steel mills in China have increased their consumption of North American coking coal from mines in Canada and the US and are taking less volume from Australia.

American and Canadian cargoes are landing in China at a price of $US218 per tonne, representing a hefty premium to offer prices for similar grade Australian coking coal.

China’s steel sector is also taking more volume from its neighbour, Mongolia, reported Reuters.

Japan’s demand falters in January

Considerable uncertainty surrounds the Australia to China trade in coking coal cargoes with market participants waiting on port clearances for laden ships off China’s coastline.

Stranded vessels are still waiting for berthing slots at Chinese ports to offload their cargoes of Australian coal and some have been resold to other markets.

“Some cargoes are looking for new buyers as most cargo owners do not expect the ban to be lifted in the first half of 2021,” a trader told Metal Bulletin.

Japanese and Korean buyers buy mostly on a long-term contract basis and have limited appetite for spot purchases of Australian coking coal even at distressed prices.

Import data for January show Japan took delivery of 5 million tonnes of coking coal, down 10 per cent from December 2020’s volume, reported Argus Media.

Australian shipments to Japan fell 13 per cent on month, and by 20 per cent from a year ago, to 2.46 million tonnes.

Weaker demand from Japan’s manufacturing sector and a second wave of COVID-19 cases has dampened demand for steel in the Asian country.