Today, December 7, a fresh trade for 75,000 mt of ex-Australia premium mid-volatility hard coking coal, Goonyella (GYC), with January 6-15 laycan, with the seller's option to deliver the same volume of premium mid-volatility hard coking coal, Riverside, or premium mid-volatility hard coking coal, Peak Downs North, was done at $251/mt FOB. Although the price in the deal in question is $9/mt below the levels in the previous trade done on December 5, market sources appear not to consider it to be a reversal of trend. “A trade at $260/mt was rumored to be a transaction to a related party,” a reliable source commented. That might mean that the information about the deal has been placed in the market within the scope of the interests of the related parties. Nevertheless, it is noteworthy that before the controversial deal at $260/mt FOB, a sale was done at $255/mt FOB, which adds more contradictions to the future trend of ex-Australia coking prices.
Meanwhile, the potential cancelation of export duty for ex-Australia coking coal to China is being rumored more often. Despite the absence of any apparent movements towards this development, some market sources expect the trade restriction to be lifted soon given the Australian government's attempts to stabilize ties between the countries. “We like the idea that everyone buys. That will make the market efficient. With China not buying post September 2021, prices are exorbitant,” a representative of an Indian mill stated.
Meanwhile, coking coal futures at Singapore Exchange (SGX), December 7, have continued to move up. Accordingly, prices for December contracts have increased by $2/mt compared to the previous level to $266.33/mt, while for January contracts prices have settled at $281.33/mt, up $6/mt from the previous levels.