Prices for ex-Australia premium hard coking coal (PHCC) have continued to rise and exceeded $250/mt FOB, because of delays in supply from Australia, queues at ports and disruptions of mining as well. This has triggered increases in the coke segment, but coke offers have been below ex-Australia coking coal prices.
An offer for 75,000 mt of mid-volatile Goonyella PHCC from Australia was at $265/mt FOB on GlobalCoal yesterday, January 27, while a bid for similar material has been placed at $252/mt FOB, which is up from the previous deal done at $205.1/mt FOB for Goonyella. Market sources said that most negotiations are for March shipments, as nothing earlier can be purchased at the moment and queues at major Australian coal terminals extend to 45 vessels.
Some traders believe that prices can reach $260/mt FOB in coming deals amid the persistent supply shortage and the lack of alternatives.
Some Indian mills have been eager to buy coke from Asia, trying to fill the gap in supply. Some deals for ex-Indonesia CSR63/65 coke have been reported at $235-237/mt FOB, but, for now, most offers from Indonesia have increased to $245-250/mt FOB, following the surge in ex-Australia coking coal prices.
