Prices for ex-Australia premium hard coal (PHCC) have increased only slightly this week even though there have been strong upward signals from China, where supply is said to be controlled this year and futures have jumped sharply. Australian coking coal prices are still too high for Chinese customers, but the gap between offers and bids has narrowed.
The latest bid for low-volatile Peak Downs PHCC was at $174/mt FOB for August laycan, while early this week a buyer bid at $161/mt FOB for similar grade material. Offers for mid-volatile PHCC are at $180-182/mt FOB, but the majority of negotiations have still been with Indian buyers, which were asking for $5/mt less.
In China’s import market, the tradable level for premium hard coking coal was $175/mt CFR at the highest, this is up from $160/mt CFR seen two weeks ago, but still not high enough for Australian sellers. Also, some bids for second-tier coking coal have been heard at $155/mt CFR, but Australian offers for this grade were at $170/mt CFR. Coking coal and coke futures jumped by the maximum limits on Tuesday after the news about production control measures by the government. On Wednesday, this news was officially confirmed. The General Office of the National Energy Administration issued a document, requiring coal production inspections in eight key coal-producing provinces, including Shanxi. All coal mines, which exceeded monthly production by 10 percent in H1 2025, will be ordered to suspend production and to pay fees.
The SteelOrbis reference price has increased this week to $178/mt FOB, up by $3/mt since late last week.
