Following a firm rise in bids for ex-Australia coking coal amid accelerating concerns about supply shortages, Australian suppliers have not been in a rush to trade. Moreover, the deteriorating weather conditions on Australia’s east coast have forced Australian sellers to be extremely cautious in trading. However, on March 9, an Australian supplier has agreed to trade 35,000 mt of low volatile hard coking coal (HCCLV) for April laycan, versus the 75,000 mt which were sought, at $650/mt FOB. The price is $100/mt higher compared to bids from customers last Friday, March 4. "It is extraordinary. The coal price corresponds to the coke price. The market is getting crazy," an official at an Indian steel mill commented.
Coking coal prices are likely to increase further, as the Port Kembla Coal Terminal (PKCT) in New South Wales has ceased operational activities due to extensive rainfall in the region. Force majeure has been declared from 7 a.m. on March 8 until further notice.