Prices for ex-Australia premium hard coking coal (PHCC) have increased further, in line with expectations, and have exceeded a $260/mt FOB mark of Friday, being supported by demand from India, though the situation in China has remained mainly bearish.
A deal for 30,000 mt has been signed by the major miner for mid-volatile PHCC (brands that can be chosen GYCC/RVC/CVC) at $262.37/mt FOB for September 21-30 laycan. This deal is signalling an improvement from the contract signed for 80,000 mt of OKN material at $255/mt FOB early in the week and 35,000 mt of Riverside PHCC at $259/mt FOB on Wednesday.
“There is demand from India still, they buy to cover needs for September. But I think we are near to the top now, $260-265/mt FOB is already a good price,” a source said. Traders have been offering mid-volatile material in the Indian market at $272-275/mt CFR in the middle of the week, and with the latest deal from Australia it is expected they will ask for above $280/mt CFR.
However, the situation in China has been totally unsupportive. The reference price has remained at $245-250/mt CFR for PHCC with offers from the US coming at $255/mt CFR China. With the recent decline in local coke prices in China by RMB 110/mt this week, there have been very poor expectations regarding China to resume active imports of coking coal from Australia.