Though overall market conditions in the Australia coking coal market have remained rather weak with limited trading activity observed, one deal signed this week has indicated an increased price. A contract for 75,000 mt of Goonyella mid-volatile premium hard coking coal (PHCC) was done at $240.1/mt FOB for mid-May laycan, up from the previous deal at $238/mt FOB and some bids at $235/mt FOB voiced in late March. This was a sale from a miner to a trader, while most Indian mills are cautious about accepting higher prices. Some mills are still looking for $245-250/mt at the highest on CFR basis for prompt shipment.
The price increase has been explained by a few factors connected with supply from Australia. There have been delays in transportation of cargoes not only from Australian ports, but also from mines to ports due to the global energy crisis. Also, fuel costs are on the rise. Moreover, in the current conditions, demand for coking coal is also expected to increase soon, so sellers believe that major customers will have no other option but to accept the current price increase.
At Singapore Exchange, May contracts reached only $236/mt, so some market sources believe spot prices for Australian coking coal may move sideways for some time.
