Prices for ex-Australia premium hard coking coal (PHCC) have been gradually improving since last week amid the hike in steel prices in China and the resumption of coal purchases from Australia, while Indian mills have been preparing for restocking.
Late last week, two deals for a total of 160,000 mt of mid-volatile Goonyella PHCC were done at $187.75/mt FOB for November laycan. Fresh offers have been heard at $195/mt FOB on Wednesday. Market sources said that, at the moment, Indian buyers may consider $190/mt FOB, taking into account the end of the monsoon season and the start of an upward trend for long steel prices at least.
Moreover, in China, a deal for 70,000 mt of low-volatile PHCC from Australia was done at $203/mt CFR this week for prompt shipment, while offers were at $195-198/mt CFR for Canadian and Australian materials late last week, while buyers were ready to accept not higher than $195/mt CFR. On Tuesday, steel mills in China accepted a second rise in local coke prices of up to RMB 55/mt.
The SteelOrbis reference price for ex-Australia PHCC has been settled at $188/mt FOB, versus $178/mt FOB last week.
