The seaborne metallurgical coal market will likely remain rangebound in the third quarter as ample cargo supplies offset the fears of tight supply following a mine incident, while the market awaited India's return for post-monsoon procurement.
The third quarter began with the miner Anglo American suspending production at Australia's Grosvenor coal mine in Queensland following an underground coal gas ignition incident on June 29, fueling concerns of a supply shortage. However, the miner has since committed buyers on third-quarter supplies, while declaring force majeure on fourth-quarter deliveries.
The benchmark Platts premium low-volatile hard coking coal prices on FOB Australia basis fell by 4.3% or $10.5/mt on the quarter to $234/mt on June 28, while the PLV CFR China prices fell by $10/mt, or 3.9%, over the same period to $247/mt, according to S&P Global Commodity Insights data.
Following Anglo's mine incident, PLV FOB Australia prices jumped 10.3% or $24/mt to $258/mt on July 2 as a trader secured replacement volumes amid uncertainty over July deliveries from the miner. But all the gains have since been wiped out as major buying markets remained on the sidelines.
