Prices for ex-Australian premium hard coking coal (PHCC) have reached a new peak at $360/mt FOB after a few deals done early this week, resulting in a $29/mt hike compared to late last week. The latest increase has been above the expectations of most market sources, and they believe that coking coal has reached a temporary peak for now.
The latest deal for 40,000 mt of ex-Australia mid-volatile PHCC with Goonyella C/Riverside/Caval Ridge options was done at $360.25/mt FOB yesterday, October 4, while early in the week the same material changed hands at $345/mt FOB. The deal prices reached $331/mt FOB late last week. “I think we will wait and see first where prices stabilize. End-users are very resistant towards this price [at above $350/mt FOB],” a source said.
“Today is rather quiet. Bids were at $340-345/mt FOB before yesterday’s deal, so mills [end users from India] will take a pause,” another source said.
India has been the main buyer of ex-Australia coal lately and with its strong steel production the trend will continue.
The hike in coking coal prices will likely to lead to a further jump in coke prices. An Indonesian seller has already voiced offers at $390-400/mt FOB for CSR65 coke, while last week the Chinese reference price was $345-350/mt FOB. “I believe mills [in China] will target $360-370/mt FOB for coke next week,” a trader said.
