With ex-Australia coking coal supply having risen lately, global customers have become more bearish. Aiming to push prices down in the coming transactions, they either voice lower bids or abstain from any negotiations, thereby exerting pressure on the suppliers. According to sources, while ex-Australia coking coal, with April laycan, is available at $320-325/mt FOB, a few customers have showed interest in buying at $300-320/mt FOB.
Last week, a cargo of ex-Australia premium mid-volatility hard coking coal was sold to Indonesia at $340/mt CFR, which is netting back to around $326/mt FOB.
The sentiments in the futures market are the same. In particular, today, March 28, at Singapore Exchange (SGX) coking coal futures prices for April contracts have declined by $6.5/mt compared to the previous levels to $310.83/mt, while for May contracts prices have decreased by $5.33/mt to $302.67/mt.