When inquiring about pricing for pulverized coal injection (PCI) in the US export and domestic markets, sources point SteelOrbis to the recent trends in the Asian markets as US prices move "with strong correlation with global indices and trends largely led by Asia."
A source noted that a Japanese steelmaker has recently agreed on a Q3 settled contract price for PCI at $127.50/mt FOB Australia and semi-soft coking coal at an estimated $118/mt FOB.
In August, Japanese steel mills reportedly agreed to PCI Q3 settlement prices at $115-120/mt FOB Australia. In July, several Japanese mills settled Q3 PCI contracts at $110-120/mt FOB Australia while semi-soft coking coal was at an estimated range of $105-110/mt FOB Australia. The latest PCI contract pricing indicates an increase of $7.50-12.50/mt over August Q3 settled prices and an increase of $7.50-17.50/mt compared to July Q3 reported contracts.
The Q3 July prices were a decline from the Q2 settlement prices heard at $135/mt FOB Australia for PCI material and $126/mt FOB Australia for semi-soft coking coal. Q2 settled prices were delayed in negotiations due to the rainfall from Cyclone Debbie in Australia that resulted in coking coal supply disruptions and higher spot prices than initially forecast for Q2. The Q2 settled contract prices incorporated an unanticipated premium. In the month of April, for example, spot market transactions and offers on PCI were at $180-$200/mt FOB China and FOB Australia.
The source noted, “A rebound in PCI contract prices in Asia from August to early September indicates a strong global pricing outlook for PCI and coking coal in general through the end of September and possibly into Q4.”