With concerns towards the future of the steel industry lately rising, the actions of global steelmakers when procuring raw materials have largely remained inconsistent and contradictory. Specifically, following the recent commitment to accept high prices for coking coal, global steelmakers have decided to be aggressive once again. Lower-priced trades at Singapore Exchange (SGX) appear to have undermined the positions of Australian coking coal suppliers in the spot market.
Accordingly, as of September 7, ex-Australia coking coal prices for September contracts at SGX declined further by $1.34/mt to $269.33/mt, while for October contracts prices lost $3/mt to $267/mt.
Meanwhile, at the beginning of the current week, a 30,000 mt cargo of premium mid-volatility hard coking coal (HCCA)l, for October 1-10 laycan, was traded at $272/mt FOB Australia, down $8/mt from offers at the end of the previous week.