The price of Australian grade 1 hard coking coal remained stable, and market participants suspended trading while seeking clarity on the price direction.

The price of Australian high quality low volatility (PLV) hard coking coal as assessed by Argus is $244 per ton FOB (FOB), while the price of grade 2 is $207 per ton FOB Australia.

Market participants expect prices to be supported in the short term due to tight spot supply. A Singapore-based trader said that some mines are scheduled to be maintained in the third quarter, so there may be fewer spot goods available.

However, an international trader said that there is still limited room for price increases. How high the price can go will depend on demand in India, and it looks weak in the short term.” he said.

Today on the Globalcal platform, someone offered to buy 40,000 tons of high-quality medium volatile hard coking coal. The shipping period is July 1 to 10. The price is 226 US dollars FOB Australia, which is 3 US dollars/ton higher than the previous day. The bid did not attract any counteroffers.

The price of high-quality hard coking coal in India remained at $262.35 per ton cost plus freight (CFR), while the price of grade 2 remained at $225.35 per ton CFR on the east coast of India.

Today, the price of PLV coking coal for China remains unchanged at $255 per ton on the CFR basis, and the price of the second grade remains unchanged at $223.50 per ton in CFR northern China. Despite the strengthening of the domestic market, maritime trade activity remains sluggish.” The fundamentals of supply and demand in China are still strong, so there is little room for prices to fall.” An international trader said.

Market participants indicated that steel mills have maintained good profit margins, and iron production is expected to remain strong. Another trader pointed out that steel exports were strong in May, and exports are expected to remain stable for the rest of the year as prices are still competitive compared to producers in other countries.

In the coke section, a coke producer in Inner Mongolia today proposed the first round of coke price increases of 100-110 yuan/ton (14-15 US dollars/ton), citing high production costs. Market participants expect major coke plants to follow suit in light of rising domestic coking coal prices.

(The above content comes from the latest opinion of Argus, an independent international energy and commodity price assessment agency)