Prices for ex-Australia premium hard coking coal (PHCC) have been corrected down slightly from the recent highs as the uptrend has not been supported by further demand and Indian buyers have been more cautious in purchases. Moreover, Asian buyers have found ex-US PHCC prices more attractive, which has become a strong obstacle for the uptrend in ex-Australia prices seen earlier this month.
A deal for 35,000 mt of Blue Creek 7 PHCC from the US was done at $223/mt CFR to Indonesia in the middle of the week, while another deal for a similar volume of hard coking coal Blue Creek 4 changed hands at $190/mt CFR China. “This price to China is much lower due to less demand for non-prime material,” a source said. Another offer of Blue Creek 7 has been reported at $225/mt CFR SE Asia late this week and, according to market sources, this material could be offered to India at $235/mt CFR. “If someone needs to buy, I think the US or Russia would be the best options,” a trading source said.
In such conditions, ex-Australia PHCC prices have been too high for customers. Bids from India are not expected to be above $220/mt FOB in the next round of sales, market sources believe, while the previous deal for premium material from Australia to India was done at $246/mt CFR or around $230-231/mt FOB. The SteelOrbis daily reference price for ex-Australia PHCC has been lowered by $5/mt to $226/mt FOB.
Ex-Russia PCI offers have been reported at $145/mt CFR to China and Southeast Asia.