Prices for ex-Australia premium hard coking coal (PHCC) are expected to rise further next week as a few bids at higher levels have already started to emerge, while supply from Australia is likely to be reduced due to rainfall and queues at ports.
A deal for 72,000 mt of ex-Australia low-volatile PHCC was done based on the index price on Thursday as a trader has taken a position, waiting for demand from China to increase further. At least one bid also for low-volatile material has been reported at $330/mt FOB with a few sources agreeing that the price is good, though there has been no confirmation of the signing of a deal. The previous contract for mid-volatile material was done at $325/mt FOB early this week. There are up to 30 vessels waiting for loading at two major Australian ports, namely, Haypoint and Gladestone, and with the heavy rainfalls there are no expectations that the queues will be reduced rapidly in the short-term.
In India, bids have been at around $335-340/mt CFR for December laycan.
At the same time, the tradable level for PHCC in China has increased to $330-340/mt CFR versus $320-325/mt CFR last week.
Also, the recent explosion on the Baikal-Amur mainline on the Buryatia railway, which is the main connecting railway between Russia and China, may impact some coal transportation volumes.