The number of deals in the spot Australian coking coal market has risen lately. Moreover, the attempts of Australian coking coal suppliers to obtain higher prices in deals, fueled by the emergence of positive prospects towards developments in the steel industry, have ultimately yielded results. Accordingly, on August 4, major Australian coking coal supplier BHP is reported to have sold three cargoes. In particular, 75,000 mt of low-volatility premium hard coking coal (HCCLV), Peak Downs brand, for September 21-30 laycan has been sold at $205/mt FOB Australia. Another cargo for 75,000 mt of premium mid-volatility hard coking coal (HCCA) with a seller's option to replace Goonyella Riverside brand with Caval Ridge brand, both for 1-10 September laycan, has been transacted at $201/mt FOB Australia or $196/mt FOB Australia, respectively. Concurrently, the supplier has sold a 75,000 mt cargo of premium mid-volatility hard coking coal (HCCA), for September 16-25 laycan, leaving an option for itself to substitute the brands: in the case of Goonyella Riverside brand shipment the price was fixed at $199.5/mt FOB Australia, while for Caval Ridge brand the price was settled at $197.5/mt FOB Australia.
Earlier this week, a 85,000 mt cargo of ex-Australia premium low-volatility hard coking coal (HCCLV), for September laycan was traded at $198/mt FOB Australia, with the option left for the seller to replace the cargo with premium mid-volatility hard coking coal (HCCA) Caval Ridge at $193/mt or Goonyella Riverside at 194/mt FOB Australia. Meanwhile, at the beginning of the current week, an offer for low-volatility premium hard coking coal (HCCLV) was made at $205/mt FOB Australia. However, as the buyer was not ready to pay higher than $167/mt FOB and no deal was done.
Notwithstanding the recent gains of Australian coking coal suppliers, market players have remained highly skeptical regarding the sustainability of the uptrend in the coking coal market, as the overall fundamentals in the global steel industry are still poor. Moreover, the mismatch between supply and demand has continued to exert a negative impact on the positions of coking coal suppliers.
Meanwhile, coking coal prices at Singapore Exchange (SGX) ex-Australia have continued to consolidate. Accordingly, on August 4, ex-Australia coking coal prices for August contracts were settled at $203/mt, while for September contract prices have increased by $0.33/mt compared to the previous levels to $210.33/mt.
Following the latest transactions, the SteelOrbis assessment for ex-Australia coking coal has firmed up by $1/mt compared to the previous day to $199/mt FOB Australia.