With hard coking coal export prices at $170/mt FOB Australia and premium hard coking coal export prices at $180-185/mt FOB Australia, the dynamics and corresponding pricing has changed from April after Cyclone Debbie sent premium hard coking coal prices soaring to $300-320/mt FOB Australia. As transportation bottlenecks saw relief in late April, prices began to fall.
Negotiations are underway for additional purchases, and sources note that the market is looking for an equilibrium. The price range of $150-180/mt on FOB Australia on premium hard coking coal is feasible for the remainder of the month, although the top end of the range is hopefully preferred by customers to avoid additional market volatility, according to a source. European coking coal buyers are expected to continue purchasing given relatively strong domestic steel markets.
US grade A hard coking coal is presently heard at $188-190/mt FOB US East coast (USEC) while the grade B coking coal is presently heard at $158-160/mt FOB USEC. A source noted that some recent spot deals on low volume shipments have been heard at $175-180/mt FOB USEC.
Australian origin premium hard coking coal is presently heard at $190-193/mt CFR Rotterdam while US origin grade A premium hard coking coal is heard at $197-205/mt CFR Rotterdam and grade B hard coking coal at $170/mt CFR Rotterdam.