Prices for ex-Australia coking coal have posted a sharp decrease this week as bids have been falling and most buyers have held a wait-and-see stance. Ample supply and limited demand may put further pressure on prices.
An offer for ex-Australia premium hard coking coal (PHCC) was reported at $222/mt FOB yesterday. At the same time, bids have been at $194-199/mt FOB for mid-volatile PHCC and at $200-201/mt FOB for low-volatile PHCC. “There is ample supply and very poor demand, the market is definitely moving in the negative trajectory,” a trader said. “I think offers will go down further. Bids at $200/mt FOB are safe, targeting China’s market,” another source said.
The tradable level for PHCC in China has been at $220/mt CFR, though mills have been quiet in terms of bidding. Local coke prices in China have stopped falling and there has been some improvement in sentiments, which, however, has failed to support spot coking coal prices, at least for now.
June hard coking coal futures at Singapore Exchange have added $5/mt from the previous day to $228.67/mt.
The SteelOrbis daily reference price for ex-Australia premium hard coking coal has settled at $222/mt FOB on May 18, down from $240/mt FOB since late last week.