Due to the market's expectation of tighter spot supply, the first-grade offshore Australian coking coal price increased slightly yesterday.

Agus evaluated the Australian premium low-volatile (PLV) hard coking coal price rose $2 per ton to $246 per ton offshore, and the second-tier hard coking coal price rose $1 per ton to $208 per ton offshore in Australia.

According to market participants, due to maintenance work by major producers, Australian coking coal prices in July are expected to rise due to supply tightness. They expect short-term coking coal prices to break through the level of $250 per ton offshore in Australia.

Some participants pointed out that the market is in a deadlock. A Singapore-based trader said: "Because everyone expects coking coal prices to rise in July, buyers are now eager to ensure a lower fixed price for coking coal, but sellers prefer to wait until prices rise before selling."He added: "There is at least a $10 per ton difference in price expectations between buyers and sellers, so sellers will choose to wait until they catch the rising market."

Demand in India is expected to remain moderate after the end of the general election and monsoon season. An Indian trader pointed out that infrastructure projects are usually suspended during elections because the government does not allow any new expenditure in the field. He added: "If the election results are favorable to the current government, the first 100 days after the election may see a surge in related spending."

On May 28th, a trading company sold about 20,000 tons of waterborne Goonyella coking coal from Australia at a cost-plus-freight (CFR) price of about $270 per ton to India.

In the metallurgical coke field, market participants are taking a wait-and-see attitude, waiting for the results of a stakeholder meeting called by the Directorate General of Foreign Trade (DGTR). The meeting is to collect opinions on the proposed quotas from participants in different industries, and DGTR will need some time to make a decision, several sources in India said.

The price of high-quality hard coking coal to India rose $2 per ton to a benchmark cost-plus-freight (CFR) of $264.35 per ton, and the second-tier price rose $1 per ton to a benchmark cost-plus-freight (CFR) of $226.35 per ton on India's east coast.

Yesterday, the price of high-quality PLV coking coal to China rose $2 per ton to a benchmark cost-plus-freight (CFR) of $257 per ton, while the second-tier price rose $1 per ton to a benchmark cost-plus-freight (CFR) of $224.50 per ton in northern China.

In China, although sea transportation PLV coking coal prices are competitive relative to domestic high-quality coking coal prices, sea transportation trading activity is still sluggish, market sources said. A Chinese trader said: "Considering the inland transportation cost of domestic coking coal, southern buyers will be particularly interested."

A Chinese trading company offered 55,000 tonnes of US high-volatility A coking coal for shipment in June at a discounted price of 98.5% based on the second-tier hard coking coal CFR China index.

(The above content is from Argus, an independent international energy and commodity price assessment agency)