Prices for ex-Australia premium hard coking coal (PHCC) have posted a small decline this week after a number of offers reported at lower levels and buyers are waiting for the next deals below the $190/mt FOB mark again. No improvement of demand from India and the weak return of China have been behind the recent softening of coking coal prices.
An offer for 45,000 mt of mid-volatile Goonyella PHCC was reported at $189/mt FOB on Monday and at $187/mt FOB on Tuesday, while last week the tradable price for this grade was at $190-191/mt FOB at the lowest. Bids for mid-volatile PHCC have softened to $185/mt FOB or just slightly above.
Indian buyers have been inactive recently and, with the continued decrease in local steel prices in India, the previous positive outlook in the coking coal market has started to fade away. At the moment, Indian buyers’ price ideas are at around $200-201/mt CFR, which is equivalent to $185-186/mt on FOB basis.
Last week, a contract for low-volatile Peak Downs PHCC was signed at $191.75/mt FOB for November laycan, but this week market sources believe this price is impossible and the highest would be $188/mt FOB with not so many buyers in the market for low-volatile material again.
The Chinese steel market has reopened rather negatively after the long holiday, and both supply and demand in the domestic coke market have been limited, resulting in stable prices, and market sources are not sure if, amid such conditions in the steel market, coke prices can rise further after the first round of increases announced from October 1.
The SteelOrbis reference price for ex-Australia PHCC has settled at $186.5/mt FOB, down from $191.75/mt FOB late last week.
