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Supply shortages boost August prices

SUPPLY shortages gave support to firmer spot offers during August, with demand forecast to rise a...

Staff Reporter

TSI said premium hard coking coal prices were up 4.98% month on month in August to an average monthly price of $US139.30 per ton.

Hard coking coal prices increased 7.08% to $124.76, TSI said.

The prices are compiled using spot transaction data submitted to TSI by buyers and sellers of Australian origin product.

TSI cited strong demand from Chinese, European and Japanese mills that returned to the market to replenish inventories, as well as supply shortages for pushing prices up during the month.

“In Australia, the supply of premium hard coking coal and hard coking coal was disrupted at four different mines due to maintenance and technical issues. Supply of hard coking coal from Mongolia and Indonesia was also short,” TSI said, adding that Russian supply shortages also added to buyers’ woes.

Overall, demand across Asia remained largely flat throughout August amid a traditional slowdown in construction activities.

However, a pick-up in spot buying activity was observed in the Chinese market from the last week of July, which lasted into the third week of August.

Chinese buying interest waned towards the end of August as cargo requirements were met.

Looking forward to September, TSI said China had historically increased demand for raw steel making materials due to a traditional increase in steel production during the month.

The same occurs in South Korea and Japan but monsoon season in India will not see demand increase there until October.

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