Prices for ex-Australia premium hard coking coal (PHCC) have continued to move down and have slipped below the $170/mt FOB mark - to the lowest level in the past three years. Prolonged weak buying activity in the major markets and increased oversupply have been behind the downtrend in the coking coal segment.
Two deals for 75,000 mt each of mid-volatile Goonyella PHCC were signed at $169.3/mt FOB for late April-early May shipment. Both cargoes are for the Indian market, which had been silent over the previous two weeks. Market sources said that some traders have decided to buy as prices have dropped a lot, but the overall outlook is still bearish.
An offer for 54,000 mt of low-volatile PHCC from one steel mill for re-export was at $170/mt FOB, while last week offers were fluctuating at $176-184/mt FOB. “There are a lot of cargoes in the market. I don’t see any positive signs for the near future,” a trader said.
In China, the tradable level for import PHCC has settled at $170/mt CFR, signaling that the gap with ex-Australia FOB-based prices remains and so trading has remained halted. But market sources do not exclude some purchases if prices keep moving down.