Prices for coal supplied by sea are currently underpinned by strong margins for steel prices and limited additional coking coal supply, as well as current logistics restrictions in the US and Australia, Seaport Global reported on Monday.
Although coal prices declined in the second quarter, compared to their peak in the first quarter for most grades, levels are still relatively high.
Provided steel markets remain strong, coking coal prices could be flat this year and next, with potential gains.
TSI Premium HCC is down to an average of $ 198 /t FOB Australia since March 1, from $ 237 /t FOB in Q1 contracts. The average May margin is used to obtain the quarterly prices for the second quarter for some contracts.
In addition, the rise in crude oil prices has expanded this year, driven by strong global steel prices.
Coking coal rises amid strong steel prices
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