Coking coal dragged down by China

COKING coal markets suffered a hit last week, down 2% to $US142 per tonne, appearing to play catch-up with recent sharp declines in base metals, according to ANZ.
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Lou Caruana

Coking coal followed China’s manufacturing index down. It has been trending downwards for several months.

On the flipside, Australian FOB thermal coal prices appear to be ticking higher due to lower availability of prompt cargoes and expectations that China’s proposed ban on low-quality coal imports will benefit this market, according to ANZ.

“Reports suggest China’s ban on high-ash and high-sulphur coal imports with a heating value of less than 4500kcal/kg could be legislated this week. Indonesian miners look to be the worst-off if the ban is implemented,” ANZ said.

“Despite the news, low-rank Indonesian coal rose slightly as Indians continued to buy, but the monsoon season is expected to impact import demand soon.”

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