Met coal prices enter Q3 on downtrend as rainy season lull looms

The price downtrend that dominated the seaborne metallurgical coal market in the second quarter looks set to extend into Q3, with construction activity expected to slow down in both China and India in coming weeks due to the rainy season.

However, prices also have the potential to remain highly volatile as western countries mull further sanctions on Russia and China grapples with how to revitalize its economy in the wake of COVID-19 lockdowns.

The benchmark Platts premium low-volatile hard coking coal price on an FOB Australia basis fell $213/mt quarter on quarter to end Q2 at $302/mt, while the PLV CFR China price fell $46.25/mt over the same period to $394/mt, S&P Global Commodity Insights data showed, amid increased spot supply and decreased steel demand.