Prices for ex-Australia premium hard coking coal (PHCC) have been supported this week by higher interest seen from China, rare deals to India, and in general the more positive mood and outlook for the near future.
The SteelOrbis reference price for ex-Australia PHCC has settled at $237/mt FOB, gaining only $1/mt over the past week.
A deal for 30,000 mt of low-volatile Illawarra PHCC was done to India at $250/mt CFR for end-of-July laycan, which is assessed as prompt and is not included in the reference price. This price translates to around $235-237/mt FOB, but later this week a deal also for low-volatile material has been rumored at $239/mt FOB, but this could not be confirmed by the time of publication. “India is still weak due to the monsoon, but we expect trading will be more active in August,” a source said.
In China, a deal for ex-Australia low-volatile Peak Downs has been reported at $245/mt CFR, which is around $235-236/mt FOB. Another deal has been rumored at $250/mt CFR, but remained unconfirmed. Last week, the tradable level in China was at $240/mt CFR for PHCC.
A firm offer for 35,000 mt of low-volatile PHCC was at $245/mt FOB for September shipment early this week. “The market is more positive, but it needs more buying,” a trader said.