World coal prices fall

Growing demand from India and extremely low inventories at the Richards Bay coal depot could positively impact South African coal quotes in the short term.

Growing demand from India and extremely low inventories at the Richards Bay coal depot could positively impact South African coal quotes in the short term.

Last week, the price of thermal coal on the European market fell below 130 USD/ton on the news of the possibility of further price decline in the Chinese market, while the Russian coal price of 6000 kcal/kg FOB was kept at the level. $165/ton.

In China, the spot price for 5500 kcal/kg FOB Qinhuangdao is in the range of 180-185 USD/ton. On November 29, 2021, China's National Development and Reform Commission (NDRC) called on state-owned coal producers to discuss improving the coal pricing mechanism.
Due to flooding and unfavorable weather in some Australian coal mining regions, some producers have announced force majeure in the short term which could positively affect Australian raw material quotes, which are currently at less than 165 USD/ton.
Indonesia's GAR 5900 kcal/kg quote is trending sideways at $140/ton, while Asian traders are waiting for the price to drop further.

Low demand for metallurgical coal in the Asia-Pacific market has hit Australia's coking coal index, which fell below $315/ton.

Thecoalhub