Seaborne metallurgical coal prices hit an all-time high on 25 August 2021, with premium hard coking coal assessed at $410 per tonne on a cost-and-freight basis to China, according to S&P Global Platts. The previous record was $392.50, set in January 2011. Prices on a free-on-board basis in Australia reached $232 per tonne. The rally was driven by tight supply in China, where environmental and safety campaigns restricted domestic mining, and by the unofficial ban on Australian coal that had redrawn trade flows since late 2020. Chinese buyers paid premiums for cargoes from the United States, Canada and Russia, while the gap between delivered prices in China and Australian export prices widened to record levels. Coking coal overtook iron ore as the largest input cost for many steel mills. Analysts said the rally could not last once Chinese steel output cuts deepened, but in August the market was still pricing scarcity rather than the slowdown to come.
Source: Hellenic Shipping News (S&P Global Platts) — https://www.hellenicshippingnews.com/seaborne-met-coal-hits-all-time-high-in-china-amid-domestic-tightness/
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