A deal for 75,000 mt of low-volatile premium hard coking coal (PHCC) Peak Downs was done early this week at $226.5/mt FOB for late February laycan, which is up by $6.5/mt from the previous reference price. Market sources believe that since mid-volatile material supply will be even more limited, its price in the next offers may be up to $230/mt FOB.
The upward trend is in line with expectations, based on reduced supply and serious delays in shipments of already booked cargoes from Australia. Two major Australian hubs - Dalrymple Bay Coal Terminal and Hay Point Coal Terminal - have not resumed operations as of the morning of January 13. Moreover, since late last week one of the major miners has announced force majeure at its Illawarra mine, which is the one of the most popular mid-volatile PHCC brands, and there are more concerns regarding mid-volatile offers in the near future. Tropical cyclone Koji that hit Queensland over the weekend has not hit ports, but heavy rains have created problems at some mines and railways, and so the market will need more time to return to normal. Moreover, queues at ports may last for the next month. Market sources believe.
There have been no new deals in India’s import coking coal market and market sources agree that buyers will have to adjust for now. The highest buyers’ price ideas were at $240/mt CFR, which translates to around $225/mt FOB.
Also, the Chinese market has been a little more optimistic with local coke producers even planning the first round of price rises after long-standing declines. The tradable level for import PHCC in China has inched up to $205/mt CFR, from $200-202/mt CFR in the previous few weeks.
