Australian hard coking coal prices were down for the eighth week in a row. The FOB Australian index is now priced at $228/mt and the CFR China index is now priced at $238/mt:
WoW: FOB Aus -7.7%, CFR China -3.6%
MoM: Fob Aus -24.0%, CFR China -20.7%
YoY: Fob Aus -21.1%, CFR China -16.2%
Metallurgical coal spreads continue to tighten with the fall in premium coking coal prices. US East Coast coking coals are almost back to their historical averages of 0.96 and 0.98 for US High-Vol A and US Low Vol, respectively:
Seaborne thermal coal indexes pulled back this week as markets have fully contemplated recent short-term supply disruptions are turn back towards long-run fundamentals:
WoW: API2 -1.5%, NEWC -1.7%, S. Africa -2.7%
MoM: API2 +6.2%, NEWC -4.6%, S. Africa +6.6%
YoY: API2 -12.7%, NEWC -32.8%, S. Africa -20.0%
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Weekly News Summary
Here’s the weekly rundown of the most important Coal News and Market information which I’ve curated for free and paid subscribers.
Producer Updates:
Stanmore Resources Expands Dominance with Full Acquisition of Eagle Downs Coal Ventures
SouthGobi Resources Reports Significant Growth in Mongolian Coal Production and Sales in 2023
Coal Updates:
Indian Thermal Coal Imports reach 3-month high in March 2024
Australian coal mining expansions and new projects in an era of funding uncertainty
China’s Coal Price Slump Likely to Persist Until Start of Summer
China & India boost seaborne thermal coal imports as power demand surges
Steel Updates:
European Hot-Rolled Coil Market Faces Downward Pressure Amid Oversupply and Weak Demand
India’s mills see 12% increase in steel sales in financial year 2024
Indian steel prices decline y-o-y in FY’24. What to expect in FY’25?
Hot metal proving far more cost effective than scrap in China
Will there be an eighth round after the seventh round of coke prices cuts?
Other Notable News:
Bidder field narrows for Whitehaven’s selldown at Blackwater coal mine
Deutsche Bank Says Glencore May Consider Switching Listing to US
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Coal Trader, any thoughts on where the met coal price is trending? It looks like there's been a bit of a rally but given how it behaved in the prior year, not sure if it's bottomed yet. Any catalysts that you know of which may impact it recently?
Any idea why Peabody would file for a mixed shelf and potentially issue more shares when they‘ve been buying back shares and everyone thought that would even accelerate with Elliott out?