While 2016 and 2017 each had a single, clear factor that drove up seaborne coking coal prices, this was a key feature that was missing last year, when the market continued to strengthen regardless.
And if the first few months of 2019 are anything to go by, the seaborne coking coal market might have just reached a new level of complexity.When China decided to tackle overcapacity in its coal sector in 2016, it sent prices for seaborne coking coal to record highs of above $300 per tonne fob Australia. That year was seen as a turning point for the market, and prices have not fallen below $139 per tonne fob Australia since.The following year, a major cyclone that hit Queensland state - Australia's major coal-producing region - sent prices surging close to the record highs of 2016.Although 2018 did not experience such dramatic increases, prices on average continued to strengthen due to steady demand for the steelmaking raw material compounded by supply bottlenecks affecting the seaborne market.The Fastmarkets MB fob Australia Premium Hard Coking Coal Index averaged $206.62 per tonne last year, up 10.3%...