Extended sanctions against Russia have continued to affect the global raw materials market, leaving no other option for Russian suppliers but to lower prices significantly in order to obtain orders, while most customers in the world search for alternative suppliers. A similar situation is developing in the coking coal market.
In particular, a major Austrian steel mill has booked 40,000 mt of ex-Australia South Walker pulverised coal injection (PCI) coking coal at $645/mt FOB, for 15-24 April laycan, which is $195/mt higher compared to offers heard a week ago, SteelOrbis has learned.
Meanwhile, it is said that bids for ex-Russia PCI in China have declined to $250/mt CFR, which is $30/mt lower compared to a transaction late last week, though officially the material is said to be available at $300/mt CFR. “The Chinese are taking up all the cheap raw materials from Russia. They will rule and float the world with steel,” a Europe-based trader stated.