With a pervasive stoppage of blast furnaces being announced by the global leading steelmakers recently, positions of raw materials suppliers have been apparently negatively affected. In particular, during the negotiations conducted this week for supply of ex-Australia coking coal, the counter bids have been voiced at around $25/mt lower than the suppliers have been targeting. Specifically, while an Australian supplier has been seeking to get $275/mt FOB Australia, offering a 75,000 mt cargo of premium hard low-volatility coking coal (HCCLV) Peak Downs brand, for October 11-20 laycan, the buyer has been hardly ready to pay above $250/mt FOB Australia. Having no other option to secure orders, by the end of the current week the suppliers have been forced to become more accommodating. Consequently, a 25,000 mt cargo of premium hard low-volatility coking coal (HCCLV) with October 21-30 laycan has been traded at $252/mt FOB Australia. Besides that, 34,000 mt of premium hard low-volatility coking coal (HCCL), for the second half of October laycan have been booked at the same level, with an option to replace the material with premium hard mid-volatility coking coal (HCCA), Caval Ridge Brand at $248/mt FOB Australia.
Meanwhile, at Singapore Exchange (SGX) coking coal futures have continued to move largely downsides. As of September 16, ex-Australia coking coal prices for September contracts have dropped by $2.5/mt compared to the previous levels, reaching $262.5/mt, while for October contracts prices have been settled at $248/mt, down by $5/mt.