Prices for ex-Australia premium hard coking coal (PHCC) have softened and it was confirmed in a recent deal, though some market sources believe prices still have a room to go down.
A deal for 30,000 mt of low-volatile Peak Downs PHCC was done at $231/mt FOB for end-May laycan, which is down by $1/mt from the previous firm offer level and down by $9.1/mt from the previous deal done in late March. The booking was made by a miner to an Indian trader, though overall demand from Indian end users has been minimal recently. There has been finished steel price decline seen this week and mills have enough inventories for now. They are going to return to the market with inquiries in May, market sources believe.
The weak market sentiment has been confirmed by low bids heard in the market. In GlobalCoal, bid for 75,000 mt of mid-volatile PHCC for early June laycan has been at $223/mt FOB. In addition, another bid for 70,000 mt of low-volatile PHCC for end-May laycan has been placed at $212/mt FOB. Some traders believe that the recent deal done at $231/mt FOB can be on a higher side, considering the buyers’ expectations.
