Prices for ex-Australia coking coal has been fluctuating in a limited range over the past week with only one deal done at a relatively high level, though more mills have started to offer coking coal for January shipment at lower prices, seeing weaker steel demand.
One deal for 40,000 mt of ex-Australia mid-volatile Goonyella premium hard coking coal (PHCC) was done at $206.2/mt FOB for end January-early February shipment, which is almost in line with the late last week reference of $206.5/mt FOB. Though mid-volatile PHCC is expected to remain in demand in India, this price has been assessed as relatively high in the current market conditions.
In particular, 72,000 mt of low-volatile Peak Downs PHCC have been offered at $202/mt FOB for the same laycan. This offer has been placed by the large steel mill on the GlobalCoal platform, and it was down from the previous offer at $205/mt FOB for the same grade. This is signals the reselling interest among steel mills with at least two more steel producers able to offer coal in the spot market, one from India.
There has been limited interest in ex-Australia coking coal imports in China with the tradable level being assessed at $208-209/mt CFR, versus $211/mt CFR last week.
The SteelOrbis reference price for ex-Australia PHCC has settled at $205/mt FOB.