Prices for ex-Australia premium hard coking coal (PHCC) have been rather stable in the latest bookings done in the spot market. In particular, a cargo of 40,000 mt of mid-volatile Caval Ridge PHCC was sold at $219.5/mt FOB, while 35,000 mt of mid-volatile Goonyella PHCC changed hands at $221/mt FOB, both for end April-early May shipment. There had been a very poor market activity over the previous two weeks, while the previous contract was done at $219/mt FOB, while bids were at around $220-222/mt FOB for these grades. The SteelOrbis reference price has been corrected upward by $1/mt to $220/mt FOB.
Market sources believe that overall offer volumes for Australian material will rise for May shipments, which will put additional pressure on prices. But market sources do not believe in a drastic drop on FOB basis as prices have already lost a lot from levels as high as $240-250/mt FOB late last year.
Rising freight costs are making Indian mills cautious in purchases, with a standard Panamax vessel of coking coal from Australia now booked at $26-27/mt, while before the war in the Middle East started it was at $16-18/mt at the highest.
Though some Chinese buyers may be interested in purchases of tier-2 hard coking coal from Australia at $192-195/mt CFR, this is unlikely to bring a lot of support for Australian suppliers.
