Prices for ex-Australia premium hard coking coal (PHCC) have returned to above $200/mt FOB in a new deal to a trader in anticipation of some better demand from India in the near future. The situation in China and the Far East has remained rather negative.
A deal for 75,000 mt of Goonyella mid-volatile PHCC was done at $203.4/mt FOB for early February laycan, while before the New Year holidays most bids were below the $200/mt FOB mark. A contract was signed between a major miner and a trader for the Indian market. Traders are expecting that some Indian mills will resume bookings from next week and that some higher prices for coal may be accepted with the quota starting for import coke and with at least some attempts to increase local longs prices. Traders will target $217-220/mt CFR, market sources believe, while mills’ previous bids were at $200-208/mt CFR.
Late last week-early this week, bids for Goonyella material were heard at $193-198/mt FOB, versus one offer for 75,000 mt of mid-volatile PHCC at $208/mt FOB for February laycan.
Lat week, offers for low-volatile PHCC, mostly popular in China and the Far East, dropped to as low as $190/mt FOB, but even this level failed to attract buyers. The mood in the Chinese market is negative with the tradable level for PHCC assessed at $195-198/mt CFR at the highest. Mills may replenish stocks from the local market and from import inventories at ports, which are available at near $195-205/mt in ports depending on the origin.