Chinese demand, meanwhile, continued to prop up Australian premium HCC export prices.
Platts HCC 64 Mid Vol slipped $2/mt on a CFR India basis to $226/mt CFR Paradip. On a FOB Australia basis, this assessment is comparatively more dependent on Indian demand than Premium Low Vol because the coal types reflected are commonly sold to India, while in China they compete against domestic supply.
As a result, HCC 64 Mid Vol lost $1/mt on the day to $205/mt FOB, while Platts Premium Low Vol eroded by just $0.50/mt to $218/mt FOB Australia, mostly because of increased freight.
A trader reported hearing of an Australian mid-vol blend being negotiated at a price close to $225/mt CFR India by an Indian merchant coke producer. The blend reportedly has 22% VM, 10.5% ash and 0.6% sulfur.
The trader also said he struggled to see how typical premium hard coking coal could fetch $240-250/mt CFR. He added that he believed a vessel load of Oaky Creek, for example, would only really attract buyers at $230-235/mt CFR.
Other Indian traders recently said they preferred to focus on thermal coal or met coke, margins being thin or nonexistent in metallurgical coal.
In China, a source at a large steel mill said that it was a bit early for many of the mills to restock, and that this could explain the fact that relatively few deals had been observed yet.
"I feel the [HCC] market is rising slightly," the source said.
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