The price for ex-Australia premium hard coking coal (PHCC) has softened early this week after a deal done yesterday, November 20, for 40,000 mt of mid-volatile PHCC (Goonyella C brand, which can be replaced by Riverside or Caval Ridge) at $304.5/mt FOB for late December laycan. The deal was done by a trader to an Indian end-user, according to market sources. The price is sharply down from the previous deal at $326.7/mt FOB done last Friday. However, the market has not settled at the low deal price yet as the previous rises were assessed by market sources as too big, but levels below $310/mt FOB are considered as real market prices either.
“I think this deal [at $304.5/mt FOB] is not representative, the same as that at $326.7/mt FOB,” a Singapore-based trader said, adding that, while bids are at $295-300/mt FOB from India, offers from miners are still higher, at $325-330/mt FOB. “I can’t say that supply has improved much so far,” another trader said, adding that he expects $315/mt FOB as a more fair market level which may be fixed in the next deals.
At the same time, the mood in the Chinese market is still optimistic amid the recent increase in local coke prices. The tradable level for PHCC has reached $315/mt CFR, as reported last week, but trading has not been very strong with offers from the US for December laycan reported at $330/mt CFR, while ex-Australian material is available from traders at up to $340/mt CFR.
The SteelOrbis reference price for PHCC has been settled at $309/mt FOB for now, taking into account low bids, still high offers and the latest deal.