Prices for ex-Australia premium hard coking coal (PHCC) have settled at slightly lower levels in deals this week since, even with some revival in demand in India, supply has been sufficient and to sign deals sellers have had to give discounts.
A deal for 75,000 mt of mid-volatile Goonyella PHCC was done by a miner at $187/mt FOB for October laycan, down from $189/mt FOB in the previous contract last week. Traders have been saying that $185-187/mt FOB is the current tradable level, considering bids from India and hopes that the Indian steel market will improve in September. Offers have been voiced already at a higher level - at $194/mt FOB for mid-volatile PHCC for late October laycan, but this level is too high for international traders.
The SteelOrbis reference price for ex-Australia coking coal has settled at $186.5/mt FOB, down by $2.5/mt on average from late last week.
In Indian’s import market, a cargo of 25,000 mt of Goonyella material was sold at $201.25/mt CFR for September laycan. At least two offers for similar grades have been reported at $202-203/mt CFR and $204/mt CFR, but most customers have been seeking levels not above $200/mt CFR.
In China, the workable price level for PHCC is still at $185-190/mt CFR, but demand for high grades is limited, though some limited sales have been heard for coking coal at $165/mt CFR.