Platts HCC 64 Mid Vol price into China Monday rose $3/mt to $205/mt CFR Qingdao, $17 above the August 11 price of $188/mt CFR. The Australian export price was unchanged at $188/mt FOB.
The CFR increase did not pull up FOB prices because the difference between FOB and CFR prices remains less than Panamax freight between the regions. Should Chinese prices rise further, however, FOB Australia prices could move higher. Indian mid-vol HCC imports remained at $214/mt CFR Paradip.
An Australian producer was still offering premium HCC into China at $230-235/mt CFR, depending on vessel size. The coal had 70%+ coke strength after reaction, 18-22 volatile matter, 8.5-10% ash, 0.35-0.7% sulfur, 0.03-0.07% phosphorous.
A purchasing source at a large state-owned mill indicated this price may be acceptable.
Comparably high bids from large state-owned mills have been driving the recent increases in spot prices. "If the price is attractive, then we could be interested," the source said. "We are looking for opportunities."
In contrast, a medium-to-large private mill described the price as "much too high."
Other offers heard by Chinese steelmakers included an Australian mid-vol hard coking coal at $210-220/mt CFR, for coal with around 65% CSR, 25% VM, 0.6% sulfur and high fluidity. The mill said $200/mt would be an acceptable price for this coal.
Another Chinese mill reported a US mid-vol hard coking coal with 9.5% ash and 1.3% sulfur offered at a "high" $215/mt CFR.
Domestic Chinese coking coal prices for highest-quality material remained between Yuan 1,400-1,500/mt ($206-220/mt) delivered including VAT, sources agreed.
Opinions on the health of the Chinese steel market were mixed. Demand for flat products used for example in cars and air conditioning units is increasing, while demand for construction-related rebar is decreasing, one mill said. This was disputed by a north Chinese mill, which saw prices falling
in all products segments.
Another source said that the fragility of the steel market is why the spot coking coal market remains illiquid despite rising prices.
Rebar futures in Shanghai rose slightly Monday.
In India, the market was fairly quiet, with most buyers still awaiting official confirmation of HCC contract prices for October to December, two sources said.
China Chemical Weekly: http://news.chemnet.com/img/articles/140/1409957_0.pdf
