Prices for ex-Australia premium hard coking coal (PHCC) have increased by around $10/mt in deals this week amid better demand and higher bids from India. However, a further increase is doubtful since, together with the number of inquiries in the market, there are more cargoes offering on Friday.
A deal for 40,000 mt of Goonyella C or Riverside mid-volatile PHCC was closed at $350.5/mt FOB on Thursday for December 5-14 laycan. The sale was from the miner to a trader, according to sources. This is up from the previous market indication at $347.5/mt FOB the day before and $340/mt FOB late last week.
However, on Friday, an offer for 40,000 mt of December laycan branded mid-volatile PHCC was reported at $360/mt FOB in the morning, while it came down to $340-350/mt FOB by the end of the day.
“I don’t expect prices to go over $350/mt FOB in the coming week, maybe later,” a trader said.
In China, the tradable level in the import PHCC market in China has been at $280-285/mt CFR, down by $5-10/mt over the past week, but such prices could be achieved only for ex-US HCC. Russian PCI was sold at $163/mt CFR to China this week, stable compared to the workable level last week. Indications for India are higher, at $175/mt CFR or above.
The SteelOrbis reference price for ex-Australia PHCC has settled at $349/mt FOB, up $9/mt over the past week.