Australian fob coking coal prices were rangebound during the week ended 24 November amid tight supply.

Kallanish assessed premium hard coking coal at $321.45/tonne fob Australia, down $3.66/t from $325.11/t fob the previous week.

On the Singapore Exchange, Premium Coking Coal Futures for December settled at $320/t fob on Friday, falling $3/t from $323/t fob a weak earlier.

According to traders, a trader sold 40,000 tonnes of Goonyella C/ Riverside/ Caval Ridge on Monday for 21-30 December laycan at $304.50/t fob.

Meanwhile, a trader sold 40,000t of Goonyella on Thursday for 16-25 December laycan at $320/t fob.

Citing globalCoal, a trader notes the bid price for 35,000t of Goonyella for 16-25 December laycan stood at $322/t fob on Friday. Meanwhile, the bid price for 35,000t of HCCA branded coal for December laycan was at $322/t.

“It looks like the tight supply of premium coal is still supporting the general coal market,” says a Singapore-based trader. The market should see coking coal prices stay higher than $300/t fob until supply fully recovers in Queensland. “If coke prices continue to increase, this will further support [coal] prices,” he adds.

However, he expects coking coal to be at $280-300/t fob in January and February. “I think the coal price is still too high compared with coke and steel prices. So once supply recovers, the price of coking coal should go down,” he says, adding that he expects coking coal supply to recover in the first quarter.

An India-based trader, however, remains bearish on the coking coal market outlook. “I feel the market to be bearish. The steel market is dull, there is no demand,” he says. Due to weak sentiment, he foresees coking coal prices falling again.

A China-based analyst says that, although the expectation of more stimulus measures in China has boosted coking coal sentiment there, the upside may be limited due to weak demand. The market is entering into the slack season. He also notes that if there are more stimulus measures, the actual impact on the market could only be felt in the second quarter of next year.