“I thought seaborne prices would stay around $190 per tonne cfr China until after the Lunar New Year since most end users have sufficient coking coal stock; however, the market upended our expectations,” a mill source in southern China said.
Fastmarkets’ MB cfr China Premium Hard Coking Coal Index
fell to $199.02 per tonne on January 11 - the first time since September 2018 that it has fallen below $200 per tonne. But it went on to rise steadily over the next two weeks before returning to that threshold. On Monday January 28, it was at $200.70 per tonne.
“The rebound in prices was due to a combination of cheaper seaborne coal prices [compared with domestic materials] and an improvement in steel market sentiment among Chinese participants,” the mill source added.
And they are likely to strengthen further after the holiday.
Coking coal prices usually increase when...