FOCUS: Seaborne coking coal prices set for further gains as supply concerns dominate

The upward momentum in the seaborne coking coal market is expected to be sustained over the next few weeks amid concerns about constrained supply from Australia’s coal-producing hub of Queensland due to vessel congestion at a major port.

Metal Bulletin’s fob Australia Premium Hard Coking Coal Index stood at $191.63 per tonne on Tuesday November 21, having risen steadily since the beginning of the month.
The index was at $178.08 per tonne fob Australia on November 1.
Port congestion
There is a 40-vessel-long queue at Queensland’s Dalrymple Bay Coal Terminal (DBCT), which has brought the waiting time for the loading of coal to over three weeks, compared with about 10 days typically. This long waiting time has been cited as a key factor behind the tighter supply in the spot market and the resultant higher prices.
The DBCT, on its website, said queues commonly form when the delivery of coal to the port is delayed, which forces ships to wait offshore until their cargo has arrived at the terminal for loading.

Market participants say this is the very reason why such a long queue...

Published

Deepali Sharma

November 22, 2017

09:15 GMT

Singapore