Australian coking coal suppliers have remained determined to take every advantage from the stronger buying interest seen from global customers recently. Also, the European Union's ban on coal from Russia within the scope of the fifth package of EU sanctions against Russia effective from today, August 10, has given additional support to suppliers.
Accordingly, today, a 80,000 mt cargo of ex-Australia low-volatility premium hard coking coal (HCCLV), Peak Downs brand, with September laycan has been traded at $215/mt FOB. This is a $10/mt increase compared to the price in the previous trade done on August 4. Concurrently, a cargo for 35,000 mt of ex-Australia mid-volatility premium hard coking coal (HCCA), for August laycan has changed hands at $221.5/mt FOB. The high price can be explained by the lead time in particular. “The ongoing uptrend is attributable mostly to Europe's ban on Russian coal. As for the limit [of the price rise], I guess anything below $300/mt is possible,” a major Asian source commented.
Meanwhile, coking coal prices at Singapore Exchange (SGX) have also continued to rise likewise. Accordingly, on August 10, ex-Australia coking coal prices for September contracts have increased by $2.67/mt compared to previous levels to $230/mt, while for August contract prices have been settled at $215/mt, unchanged.