Prices for ex-Australia premium hard coking coal (PHCC) have been fluctuating in a limited range slightly below $190/mt FOB. Even despite one deal done at a slightly higher level than most buyers’ price ideas earlier this week, the trend is still uncertain and market sources are awaiting more deals.
A contract for 40,000 mt of mid-volatile Goonyella PHCC was signed at $189/mt FOB for late November laycan, against most bids at $185-186/mt FOB for this grade early this week. The miner sold this cargo to a trader as the outlook for the steel sector in India for December is still positive, despite the weaker-than-expected performance in October so far, and expectations for November are also not so bright.
For now, the tradable level for PHCC for late October-early November shipment is assessed at $200-201/mt CFR, which is around $185/mt on FOB basis.
The Chinese coke and coking coal market has posted some signs of an improvement amid rising futures, though the situation in the steel market has failed to change. “The coke price is expected to be stronger, especially after coking coal futures rose more than three percent today,” a Chinese traded noted.
