Prices for ex-Australia premium hard coking coal prices have reached a new high, coming closer to the $260/mt FOB mark, amid ongoing demand coming from India, while in China the situation is not so promising and buyers are focusing on other cheaper origins.
A deal for 45,000 mt of ex-Australia mid-volatile PHCC has been done today at $259/mt FOB for September 11-20 laycan. The lot has been booked by the trader for the Indian market, a few sources have confirmed. The previous deal for mid-volatile material was at $255.2/mt FOB early this week. “Indian demand is very supportive. Mills are ready to accept around $260/mt FOB,” a source said.
At the same time, market sources believe that Australian miners will target $265/mt FOB at the lowest now as demand is stronger than supply. “I think the market may rise while buying is seen, but how long will that be?” a trader said.
The tradable level for Indian mills is at around $275/mt CFR.
At the same time, Chinese buyers have been ready to accept not above $245-250/mt CFR, with a few deals for ex-US mid-volatile material done in this range, down from the reference prices of $250-255/mt CFR last week.
The SteelOrbis reference price for ex-Australia PHCC has increased by $4/mt from yesterday to $259/mt FOB.