Coking coal exports increase in May

COKING coal markets continue to be under pressure despite more exports from Australia to the North Asia region, according to a report by the ANZ Bank.

Lou Caruana

“Reports suggest Japanese coking coal buyers are increasingly looking to the lower-priced spot market for supplies, with quarterly term contracts looking less attractive,” ANZ said.

“Australian exports of coking coal rose to a five-month high of 8.47 million tonnes in May, according to the ABS, as shipments to North Asia offset a decline in exports to India.”

Coking coal prices are now down 0.95c to $US133.40 per tonne.

Rallying oil markets potentially supported sentiment for thermal coal, with its price up by 0.3% to $77.8/t.

“Australian thermal coal exports dipped in May to 14.05Mt on lower shipments to China and Japan consistent with a falling trend in exports,” ANZ said.

“Year-to-date, thermal coal exports have fallen 9% year on year.”

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