In the latest trade ex-Australia, coking coal prices have soared further. Although traders have continued to step up their efforts to gain support from the anticipated Chinese recovery, some market players consider the upward movement more speculative rather than reflecting any actual changes in the market balance. “There are many rumors about China's opening up. It appears thermal coal will start to be imported first. Nevertheless, the role of China is exaggerated so far. Chinese coke and coking coal prices have dropped”, a China-based source commented.
Accordingly, today, January 4, a 35,000 mt cargo of ex-Australia premium low-volatility hard coking coal, Peak Downs or Saraji, has been traded at $302/mt FOB, with February laycan. The price in the deal in question is $5/mt higher than in the previous sale of 40,000 mt of ex-Australia premium mid-volatility hard coking coal, Goonyella, with February 1-10 laycan, done on December 30.
Meanwhile, coking coal futures at Singapore Exchange (SGX) for January contracts have skyrocketed by $14/mt compared to yesterday, January 3, to $296.5/mt, while for February contracts prices have settled at $292.5/mt, up $2.75/mt over the same period.