Australian coking coal suppliers have remained successful in signing contracts at high prices, although sentiments towards future developments have remained mixed. Accordingly, in the latest transaction an 80,000 mt cargo of ex-Australia premium low-volatility hard coking coal Peak Downs has been booked at $267/mt FOB Australia. Prior to that, a 75,000 mt cargo of premium mid-volatility hard coking coal (HCCA), with October 20-29 laycan, was booked at $265/mt FOB Australia, with the seller's option to replace it with another brand at $263/mt FOB, as SteelOrbis reported earlier. Some major steelmakers have remained highly skeptical over the basis for the ongoing uptrend and its sustainability in the future. “I would not buy at these levels and still prefer to wait for prices to come under $250/mt FOB. If the price keeps going up, I would rather cut production than build any stocks. I am quite sure that, with major coking coal suppliers having long positions, any bullishness is now short-lived,” a representative of a major Indian steelmaker stated.
Meanwhile, as of September 29, at Singapore Exchange (SGX), ex-Australia coking coal prices for September contracts have moved up by a further 0.92/mt to $265.17/mt, while for October contracts prices have settled at $275.33/mt, up $3.33/mt compared to the previous levels.