Coking coal market gained some breather after the relentless flogging during 2013. Supply shortage was reported for August cargo after combination of reduced rail movement in recent weeks in Queensland along with shipping bottlenecks in Indonesia are the possible reasons for the tightening in this segment of the market.
It has also been reported that quick off take by the Japanese mills have led to a supply vacuum.
It is learnt that offers were being made at USD 135-140 per tonne CFR, Chinese port for both Australian and Canadian tier-2 HCC, with indicative bids at USD 130-133 per tonne CFR going un-responded. It is atleast USD 2 per tonne climb from the previous offers.
However the premium grade HCC market remained unmoved and maintained sluggishness borne out of oversupply.
Source – Strategic Research Institute