Ex-Australia premium hard coking coal (PHCC) prices have increased again by the end of this week in a new deal and in offers. However, market sources have remained skeptical for the near future, still pointing out that supply from Australia is stable at relatively high levels and that bids from most end-users are still much lower.
A deal for 35,000 mt of mid-volatile PHCC Goonyella C was done at $235/mt FOB yesterday, July 6, for August 11-20 laycan. This is much higher than the previous deals reported on Wednesday at $220.5-222/mt FOB, also for mid-volatile material. “This [deal at $235/mt FOB] has no sense for me. We don’t see end-users who can take at above $220-225/mt FOB,” a trader said. Trading on Friday, July 7, has been almost halted and market sources have been waiting for next week to understand what the real market level is.
“Here, the market sentiment is weak due to the ongoing monsoon season. I don’t think Indian mills will buy at higher prices. A lot of pig iron offers are in the market,” an India-based source said.
The SteelOrbis daily reference price for ex-Australia PHCC has increased to $229/mt FOB, up by $7/mt from the level seen on Wednesday, while still lower than $235.5/mt FOB seen late last week.
An offer for ex-Australia PHCC to China has been heard at $230-235/mt CFR, while the tradable level is still hardly above $220/mt CFR, in line with the last ex-US deal for Blue Creek 7 reported earlier this week. In addition, some Russian suppliers have started to come back after an absence due to logistical issues. In particular, a PCI deal has been confirmed at $150/mt CFR China.