Prices for ex-Australia premium hard coking coal (PHCC) have rebounded in the middle of this week, which was confirmed in one deal for the most popular brand. But since overall supply of coking coal is on the higher side and some end users have been considering to re-export cargoes, the sentiment has remained bearish and further positive movements are doubtful.
A tender for 80,000 mt of mid-volatile Goonyella PHCC was closed at $180.9/mt FOB for July laycan yesterday. The material has been heard purchased by a trader for the Indian market. Earlier this week, the tradable level for this grade was assessed at $177-179/mt FOB. Market sources said that Goonyella PHCC has higher premium compared to low-volatile brands actively offered in the market over the past week.
An offer for low-volatile Oyak North PHCC was stable at $183/mt FOB for early July laycan, but the difference with bids has been high. In particular, a bid for 75,000 mt of low-volatile PHCC at GlobalCoal was at $175/mt FOB, up by $3/mt from early this week. Market sources believe that low-volatile material is unlikely to be traded at above $177/mt FOB soon as there is some “reselling” interest seen by some Far East mills.
The Chinese import coking coal market has remained silent with the tradable level for PHCC assessed at $155-160/mt CFR. But some Chinese mills, which purchased lower quality HCC from Canada were ready to offer for export at $145/mt CFR.
The SteelOrbis reference price for ex-Australia PHCC has been at $180.9/mt FOB, up by $4.9/mt over a day.