Prices for ex-Australia premium hard coking coal (PHCC) have rebounded early this week, by $5.5/mt on average from last Friday. The main reason for this has been renewed demand from India, with a few deals reported at high levels and bids have been voiced higher.
In particular, a deal for 40,000 mt of mid-volatile PHCC was disclosed early this week at $343/mt FOB for Goonyella brand, while at $342/mt FOB for Riverside and Goonyella C for early December laycan, up from the previous level of $340/mt FOB. Moreover, a bid for mid-volatile PHCC was reported at $345/mt FOB on Monday and $346/mt FOB on Tuesday. “I think that for December [laycan], the market is at around $345/mt FOB, but it may rise further in the next deals,” a trader said.
Moreover, stronger demand has been reflected in some “secret” deals done by traders to Indian end-users at the price level above the market. In particular, 20,000 mt of mid-volatile material changed hands at $356/mt FOB for mid-November laycan. The high price is explained by November shipment first of all as most miners have only December laycan offers. “The deal was direct, and the real market is not there yet, but I believe it will get there for December [laycan] too in the short term,” a trader said. There are talks that another deal for November laycan is under discussion now. Market source believe that ex-Australia prices may come back to $360/mt FOB within a few weeks, the highest level seen lately, but to go above this level will be problematic due to high resistance from buyers.
The SteelOrbis reference price for ex-Australia PHCC has increased by $2.5/mt from the previous day and by $5.5/mt from last Friday to $345.5/mt FOB.