Ex-Australia coking coal has been slipping this week due to the lower bids and price ideas of buyers after the sharp fall seen in the Chinese steel market. Deals are still rare, but market sources believe that demand may improve if offers fall below the $200/mt FOB mark.
A deal for Illawarra or Goonyella mid-volatile PHCC was rumoured at $204/mt FOB for September laycan, and, though this could not be confirmed, market sources believe that the real market level is close to this price at the moment. Another cargo is heard to have been sold at $206/mt FOB, but also with no confirmation. Most bids have fallen already to $200/mt FOB or below. A bid for 75,000 mt of low-volatile Peak Downs/Saraji PHCC has been reported at $189.25/mt FOB for September shipment at GlobalCoal.
Offers to Indian buyers were mainly at $225-227/mt CFR for mid-volatile material early this week, but by Thursday they have dropped to $215-218/mt CFR.
The Chinese market, even though China has not been too active in making purchases of Australian coking coal lately, has been the main driver of the recent price decline. “We need to consider the fall in steel and iron ore prices in China,” an Asian trader said, commenting on the downtrend of ex-Australia coal prices. The tradable level for PHCC in China has been assessed at $215-220/mt CFR, versus $225/mt CFR last week.
The SteelOrbis reference price for ex-Australia premium hard coking coal (PHCC) has lost $5/mt this week, coming to $205/mt FOB.
