Slow demand and low bids have been putting pressure on ex-Australia premium hard coking coal (PHCC) prices this week. And this has offset the supply concerns, even though a few miners have announced force majeure after the cyclone last week.
The lowest offer during the week was reported for 80,000 mt of low-volatile PHCC at $318/mt FOB for late February-early March laycan. Also, an offer from the major miner for 75,000 mt of Peak Downs was at $325/mt FOB. However, two bids for low-volatile material have been at $305/mt FOB and $315/mt FOB at GlobalCoal. “China will go for holidays very soon, will insist on lower prices, and probably will get it as there are a number of offers despite cyclone,” a trader said.
Also, an offer for 40,000 mt of mid-volatile PHCC was at $332/mt FOB, which has been assessed by market sources as too high and counter bids would be at $315-319/mt FOB as the highest even though some Indian mills are seeking material in the market.
An offer for ex-US PHCC to China has been reported at $330/mt CFR and the tradable level is slightly below – at around $325-327/mt CFR.
The SteelOrbis reference price for ex-Australia PHCC has settled at $321.5/mt FOB on Friday, February 2, down by $1.5/mt over a day.
