“Rising Baltic freight markets appear to be applying to the firmer spot iron ore market rather than the less buoyant coal market,” ANZ analysts said in a report spearheaded by senior commodity strategist Mark Pervan.

“Asian buyers will likely remain sidelined waiting for guidance from considerably lower (negotiated) coking coal prices expected over the next couple of weeks.”

ANZ also said reports were suggesting Asian buyers are well-stocked for the next two months and spot prices appear to have further to fall as markets move into the seasonal, slow second quarter.

“Encouragingly, news of still-sticky, high domestic Chinese coal prices may cushion the downside as more lower-priced imported coal is consumed.”

Thermal coal prices dived across the board in the week ending Friday, February 20, with the globalCOAL NEWC index sinking 5.17% to $US76.33 a tonne while the globalCOAL RB index fell 7.58% clocking in at a mere $US67.83/t.

Goldman Sachs JBWere reported last week that contract negotiations for the upcoming Japanese financial year were underway in Tokyo.

At the time, the investment bank said it was unaware of any settlements for new tonnage.