Drivers behind the coking coal price fall - via Macquarie: China's seaborne met coal imports were just 3.2mt in March, the lowest level since October 2012 on a...

Drivers behind the coking coal price fall - via Macquarie: China's seaborne met coal imports were just 3.2mt in March, the lowest level since October 2012 on a days-adjusted basis. Over 1Q as a whole, imports were down 22% YoY. The main driver of the collapse has been destocking by steel mills since the start of this year and, although met coal inventories have continued to drift down in April, the rate of destocking has slowed substantially. We feel that restock should commence over the next few weeks, improving import prospects going forward (seaborne spot material also remains more attractive than domestic on price). Meanwhile, thermal coal imports were flat YoY and down 1.5% MoM days adjusted, while lignite imports remained strong, running at 76mtpa during the month. Imports of thermal coal should be boosted in April&May by a stabilising Chinese domestic market and ongoing restocking by power plants.