As expected, ArcelorMittal Sourcing, the distributor of ArcelorMittal has managed to prevent a bigger decrease in its coking coal price, having extended the deadline of its tender after refusing a bid at $343/mt FOB.
Accordingly, today, April 6, ArcelorMittal Sourcing has closed its tender for 70,000 mt of ex-Australia low-volatility Peak Downs coking coal, for 5-14 May laycan at $383/mt FOB Hay Point. “The tender is unlikely to be closed at the price targeted by a customer,” an international trader commented with regard to the auction held yesterday. “Coking coal appears to be on a free fall,” an India-based trader stated.
As SteelOrbis reported earlier, following a transaction for 75,000 mt of ex-Australia premium mid-volatility hard coking coal in late March at $540/mt FOB, the customers have started to aggressively decrease their bids. Specifically, since the end of last month, customers have been seeking to book at $400/mt FOB, though sellers have not accepted.