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China favors both Australia and Russia coking coal |
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Wednesday, 26 August 2009 |
 It is reported that this week the international thermal coal market has edged up slightly. Statistics from GlobalCoal indicated on August 21st the price index of thermal coal price at Australia's Newcastle port continued to dip USD 2.25 per tonne to USD 72 per tonne by over 3%.
This had been the fourth consecutive downward week.
The price index of thermal coal at Richard port in South Africa edged
down by USD 0.35 per tonne to USD 63.45 per tonne by 0.4%. That in ARA
market in Europe dropped by USD 0.94 per tonne to USD 70.72 per tonne
by over 1.3%.
After climbing up to USD 78 per tonne the price index of thermal coal
has finally dropped in Asia's thermal coal market. However, as price
drops would lead to increases in China's imports, it's not expected to
drop below USD 70 per tonne.
Mr Murray Houston CEO from Xstrata predicts China coal imports would
surge by 80% and exports down by 30% this year making China a net
importer of coal with 30 million tonnes to 35 million tonnes of net
import volume. This is partially due to the fact that devalued
international coal is more advantageous for China than self produced
coal. China' coal imports in Jul remained at 13.89 million tonnes down
by 2.18 million tonnes or 13.6%YoY. In August it's still expected to be
in the downward path.
This week China, while still possessing much enthusiasm for imports,
has witnessed Australia coking coal running tight to import, for more
coal has flowed to Japan and Korea than before. The other reasons are,
Australia coal is passed over traders and to large scale steel mills
directly and that transporting capacities at ports are curbed and
export quotas are implemented on Australia's coal imports. This week
Australia primary coking coal remains at USD 165 per tonne at each port
in China and the transaction price stays at CNY 1,240 per tonne at
Jingtang port in China.
While Russia coal is quite hot, and is relatively flexible in delivery.
As it's cheaper than domestic coal, trade is quite active, and the spot
price has risen by CNY 60 per tonne to CNY 1,160 per tonne this week.
Other varieties of coal also experienced CNY 20 per tonne to CNY 30 per
tonne rise in price.
Coal stock volume in power plants dropped 0.6% in the US this week.
However, current stock level is still 27.7% higher than the same period
of last year. Statistics from the power sector show there is now 176
million tonnes of coal stock in America power plants, compared with 177
million tonnes last week and 138 million tonne at the same period of
last year. This amount of coal, in the light of normal operation, can
sustain 66 days' working, compared with only 14 days YoY.
Source: Steelguru
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