Seaborne coking coal offers move up in February

Seaborne coking coal offers rose in February 2020 amid short supply. Premium variety quoted at $157/ton FOB Australia on February 27, 2020 as against $153 per ton on January 31, 2019. Peak Down prices quoted at $158/ ton FOB Australia on February 27, 2020 as compared to $154 on January 31, 2019.

- Arindam Bandyopadhyay

Coking coal prices staged a decline in the first fortnight, but rebounded in the third week, as increased enquiry and trading in second-tier seaborne coking coal put upward pressure on prices, market sources said.

Traders said offers were up with tight seaborne supply driving sentiment. As a result, coking coal prices registered gains, despite the pessimism in the market over the outbreak of the novel coronavirus in China.

Towards the middle of February offers steadied, with a premium mid-vol cargo fetching $150 per ton fob Australia.

During January 2020, crude steel production in India was 9.288 million tons (mt), a rise of 0.1 percent over the production figure of December 2019, which was at 9.281 mt. In January 2020, hot metal production was at 6.140 mt, down 2.7 percent over the December 2019 production of 6.309 mt.

Crude steel production in April-January period of current fiscal remained stagnant at 91.48 mt, while hot metal production fell 0.9 percent to 60.87 mt.