Prices for ex-Australia premium hard coking coal (PHCC) have finally retreated in new deals signed to Indian and Japanese end-users today. Though coking coal quotations from Australia have been fluctuating at slightly above $230/mt FOB for some time, slow demand in India due to monsoon season, lower bids from end-users and competition with other suppliers like the US have finally led to “prices coming to more reasonable level,” a source said.
A deal for 75,000 mt of mid-volatile PHCC with August 1-20 laycan has been signed at $220.5-$222/mt FOB and the brands can be chosen by the buyer, which is Indian mill, between Goonyella, Moranbah North (with the price at the higher end), Goonyella C or Riverside (at the lower end).
In addition, Japanese steel producer JFE Steel has purchased 40,000 mt of German Creek at $221/mt FOB also on Wednesday, July 5, for August 1-15 laycan.
Just a day before, there were two deals for low-volatile premium hard coking coal Peak Downs at $234/mt FOB and $231.8/mt FOB. “All above $230/mt FOB seems too high for the current market even for low-vol,” a Singapore-based trader said. Sources believe that after the market has been settled lower in deals with end users, traders will not consider low-volatile material at above $225/mt FOB.
The SteelOrbis daily reference price for ex-Australia PHCC has been settled at $222/mt FOB, down from the previous $231/mt FOB and $235.5/mt FOB seen late last week.
In China, the tradable level for PHCC has been at $220/mt CFR, which has been reflected in the deal signed with the US supplier for Blue Creek 7 material early this week. Offers for ex-Russia GJ hard coking coal was at $151/mt CFR China, while GJO brand is available at $138/mt CFR.