Prices for ex-Australia premium hard coking coal (PHCC) has dropped in the latest negotiations, with a deal for 75,000 mt of mid-volatile Goonyella PHCC done at $219/mt FOB for late April laycan. This is a steep drop from the reference price at $242/mt FOB in late February.
Also, offers for the same material were at $225-228/mt FOB on Monday, while the highest bids were reported at $220-223/mt FOB before the deal was done. The contract has been signed by a trader to an Indian end-user, market sources said, while miners’ workable levels in new negotiations are expected to be in the range of $215-220/mt FOB.
There are plenty of cargoes available for April shipment, so market sources believe that deal prices may keep sliding in the near future, though at a slower pace.
Indian buyers have been looking for $230/mt CFR, which translates to $215/mt FOB, taking the previous freight rates from Australia into account. However, a possible increase in freight rates due to the escalation of the crisis in the Middle East may put additional pressure on FOB-based prices.
