Ex-Australia premium hard coking coal (PHCC) prices have rebounded this week, in line with expectations, given the return of Indian buyers, who had been refraining from bookings for some time. At the same time, the Chinese market has not improved so far, which will limit coal price rises in the near future.
A deal for 75,000 mt of ex-Australia mid-volatile premium hard coking coal (the buyer can choose among Goonyella, Goonyella C or Riverside) has been done at $237.5-238.5/mt FOB, with the first brand $1/mt more expensive than other two. The lot is for June 11-20 laycan. According to sources, it has been purchased by a trader for further sale to an Indian end-user. But apart from this contract, a few other sales have been reported at $235-240/mt FOB for PHCC this week, also for India, which is up from the lowest level of $225/mt FOB seen in a deal late last week. “Indian mills have started to come back to purchases. I believe after that the market will stabilize and may resume declines within some time,” a trader said.
The Chinese market has not been as supportive, with the tradable level for low-volatile PHCC being hardly above $245/mt CFR, translating to $233-234/mt on FOB basis. Though this level is above bids reported at $230-235/mt CFR late last week, trading has been very limited and the movement has been more connected with the latest deals to India rather than with the situation in China itself.
The SteelOrbis reference price for ex-Australia PHCC has increased by $13/mt to $238/mt FOB.
Coking coal futures in the Singapore Exchange have also improved, reaching $243.50/mt, up by $3.5/mt from yesterday, May 4.