Ex-Australia coking coal drops after tender results, but demand may prevent prices from further fall

Friday, 15 December 2023 15:51:30 (GMT+3)   |   Istanbul
       

Prices for ex-Australia premium hard coking coal (PHCC) have fallen this week, following the tender results on Thursday at lower than expected levels.

A trader closed a tender for 75,000 mt of mid-volatile PHCC (Goonyella C or Caval Ridge options) at $305.1/mt FOB for January 15-24 laycan, which is much lower than the tradable level late last week and some bids at $335/mt FOB. Also bids for low-volatile PHCC from Australia has been reported at $310-312/mt FOB, with the material being for the Chinese market. “Prices softened a bit, it is true, but mainly because of normal supply and pause in buying in India,” a source said.

The SteelOrbis reference price for ex-Australia PHCC has been settled at $308/mt FOB, down by $24/mt over a day.

However, the further declines in the coking coal market are questionable. New fatal accident happened at one of the major coking coal mines in Shanxi province (Huajin Coking Coal Company) on Thursday, which is expected to lead to further intensified checks by the authorities and fall in local supply. The tradable level for premium hard coking coal in China has been at $330/mt CFR, down by $5/mt over the week. Since offers for ex-US PHCC have been at $335/mt CFR. Some market sources may be interested in ex-Australia low-volatile purchases.

Also demand from India and Southeast Asia may revive slightly in the coming week ahead of holidays.

Ex-Russia coal prices to China have also posted small decreases. Ex-Russia PCI has been traded at $160/mt CFR for prompt shipment.


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