Given the prevailing concerns as regards positive future developments, global steelmakers have remained highly cautious in procuring raw materials. In particular, the major buyers of ex-Australia coking coal have continued to hold back from new bookings in anticipation of even cheaper offers, though the suppliers have already decreased their offers considerably. However, given that most Australian suppliers have continued to sit on certain stocks of August shipment material, negative pressure has been maintained on prices, leaving a chance for customers to get discounts in the coming deals.
Specifically, on Monday, a 75,000 mt cargo of premium mid-volatile hard coking coal (HCCA), unbranded, with an August laycan at $225/mt FOB, failed to attract buying interest. In its turn, a counteroffer has been voiced at $200/mt FOB. Besides that, a 75,000 mt of premium low-volatile hard coking coal, with laycan in August, has been offered at $248/mt FOB. In the middle of last week, a 75,000 mt cargo of HCCA, with September 1-10 laycan was traded at $235/mt FOB.
Meanwhile, at Singapore Exchange (SGX), although the price downtrend continues, the suppliers have become more cautious towards trading with longer lead times. Accordingly, while ex-Australia coking coal prices for August contracts on July 18 declined by $2.33/mt or 0.93 percent from previous levels to $247/mt, the prices for September contracts have been settled at $254.67/mt, up $0.5/mt from the previous levels.