Prices for ex-Australia premium hard coking coal (PHCC) have as expected inched down in the latest deals for June laycan given that there are still plenty of cargoes available. However, the benchmark price is still $5/mt higher than late last week, following higher expectations for July shipment material.
A deal for 30,000 mt of Illawarra mid-volatile PHCC from Australia for June laycan was closed at the equivalent of $235/mt FOB yesterday, May 23. Market sources said that a trader concluded a deal on CFR basis for sale to a Far Eastern steel mill, but the CFR level has remained unknown by the time of publication. Also, another deal for 45,000 mt has been rumoured at the index-linked level, meaning $240-245/mt FOB or so. But “I would say $235/mt FOB is more reasonable at the moment. There are still many cargoes [for June] are available,” a trader said.
In addition, another deal for Moranbah North mid-volatile PHCC was signed at the 100 percent premium low-volatile material index to an Indonesian mill, also meaning slightly above $240/mt FOB.
As SteelOrbis reported earlier this week, 40,000 mt of branded PHCC from Australia was signed at $248/mt FOB for July laycan. But bids at GlobalCoal have been reported at $220-225/mt FOB, including for July shipment, on Thursday and Friday.
The tradable level for PHCC in China’s import market has softened to $245-250/mt CFR, from a deal at $258/mt CFR heard earlier in the week. “With coke [in the local market] starting to decrease, higher coal prices are not sustainable,” a source said.
The SteelOrbis daily ex-Australia PHCC has settled at $238/mt FOB, down by $5/mt from yesterday, but up $5/mt week on week.
