Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.

  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list

Analysis: Met coal price spreads tighten between FOB Australia and China as demand rises

LNG | Oil | Crude Oil | LPG | Naphtha | Metals | Steel | Raw Materials | Petrochemicals | Aromatics | Olefins | Polymers | Coronavirus

Market Movers Asia, Jul 6-10: Mideast Aug official selling prices in focus; LPG discount to naphtha widens


Platts Global Coal Alert

Oil | Refined Products | Fuel Oil | Shipping | Dry Freight | Marine Fuels | Tankers

Mediterranean Bunker Fuel Conference, 9th Annual

Coal | Thermal Coal

Huaneng urges utilities to shift to long-term from spot Chinese coal deals

Analysis: Met coal price spreads tighten between FOB Australia and China as demand rises

London — The rise in met coal prices in Asia-Pacific markets this week is also tightening relative price variations between FOB Australia and coking coal markets in China.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The rise in met coal prices in Asia-Pacific markets this week has tightened the spread between the FOB Australia and Chinese markets.

Demand for restocking to meet higher steel output in China and India may be leading the trend, with met coal supported by rising costs for iron ore and a move to use lower quality ores.

China and India boosted pig iron output in the first quarter of 2019 compared with last year's levels, with China's growth rate at 9%. A slightly weaker rise in early April steel output was reported by China industry group CISA.

The spread between lower-priced Premium Low Vol CFR China and comparable quality in China's domestic market narrowed to $16.88/mt as of Wednesday.

That was down from an average $24.542/mt for imports in April compared with domestic coal prices adjusted for comparisons on a CFR basis.

On Thursday, PLV FOB Australia was steady at $209.25/mt FOB, while PLV CFR China rose $2/mt to $210.50/mt CFR.

The spread between PLV FOB and the PLV CFR China netback to Australia FOB narrowed to $9.70/mt on Thursday, from April's average of just over $12/mt.

Tighter pricing between markets for benchmark grade coal may be viewed as a normalization after looser pricing relationships based on external trade and policy measures.

Curbs to steel production in China to lower air pollution during the country's winter, may have ended up more specific and targeted than earlier anticipated, and lifted coke consumption overall at compliant mills.

Trade restrictions in China and Turkey adding to costs for importing US coals, and lengthier delays for imports clearing customs in China, saw import prices lagging domestic prices in China.

Volatility in China's coke market after a steep market correction in March and price recovery since may be keeping domestic prices higher, with China's steel production growth this year adding to demand for imports.

To blend with domestic coals, buyers are keen to buy lower sulfur, lower ash coals , with phosphorous content also attracting more attention, according to suppliers.

-- Hector Forster,

-- Edited by Daniel Lalor,