This week, prices for ex-Australia premium hard coking coal (PHCC) first dropped to $239/mt FOB, while later in the week they have returned to $249/mt FOB, which is still a little lower than a contract done at $252/mt FOB last week. The market has been a bit softer this week amid lower bids from Japan and China, while in general the firm to stronger mood in the Indian steel market has prevented prices from recording any sharper declines.
The latest deal, for 40,000 mt, of Goonyella mid-volatile PHCC was done at $249/mt FOB for June 16-25 laycan, with this cargo for Indian buyers, while the previous deal for the same grade was for Japan at $237/mt earlier in the week. Market sources said that the price is fluctuating in a narrow range as the market depends on the buyer, while supply is still sufficient. “The mood is China has been positive and, if coke prices go up, maybe we will see a further strengthening,” a source said. However, for now, bids for PHCC from China are still not above $250-255/mt CFR, so not above $230/mt FOB for Australian material.
The main focus of Chinese buyers is still on cheaper Russian and Mongolian coal. Ex-Russian PCI has been traded at $140/mt CFR during the week.