Prices for ex-Australia premium hard coking coal (PHCC) have increased further this week amid increased bids from India and still tight supply. They have broken the $270/mt FOB mark and have come closer to $300/mt FOB, though trades have been limited.
A few bids for 100,000 mt of ex-Australia mid-volatile PHCC were at $273/mt FOB in the middle of the week, after a contract done early in the week at $269/mt FOB and the reference prices of $265-270/mt FOB last week. A direct sale of mid-volatile material has been rumored at $275/mt FOB, though it has failed to be confirmed by the time of publication. Moreover, on Friday, at least one bid for mid-vol Goonyella coking coal has reached $290/mt FOB, while another has been reported at $276/mt FOB. “There are no deals, but bids are rising sharply,” a Singapore-based trader said.
All the recent bids are from Indian mills, which managed to increase local flat steel prices by INR 1,500/mt ($18/mt) for September.
However, the tradable for PHCC in China has also improved, by $5/mt to $250-255/mt CFR, though offers from the US have been at $265-270/mt CFR. “Local coking coal prices are equivalent to around $280-285/mt after the increase, so bids [for import coking coal] will also move up,” a source said.
The SteelOrbis reference price for ex-Australia PHCC has settled at $281.5/mt FOB, up by $14/mt from last Friday and up $12.5/mt from yesterday, September 7.