Prices for ex-Australia premium hard coking coal (PHCC) have slipped in new deals due to the improvement in supply and still reduced demand. Moreover, while market sources were previously unsure how the market would move, at the moment bearish sentiments have become more pronounced.
A deal for 40,000 mt of mid-volatile Goonyella PHCC was done at $314/mt FOB for March laycan yesterday, February 8. This level is down $7.5/mt from the reference price last Friday, indicating that “Indian buyers are still cautious and bids are definitely declining,” as one trader commented. Another deal for 77,000 mt of low-volatile Peak Downs PHCC from the main miner was signed at $312/mt FOB for late March laycan. The final sales destination has remained unclear as people said the booking is for a trader’s position. Some sources believe that it will be traded to Japan or China after the holiday. Prices for low-volatile PHCC are still lagging behind mid-volatile as in general demand from India, which prefers the latter, is expected to remain better than that from China and Japan, while spot sales to Europe are also limited with more blast furnace maintenance works seen.
The SteelOrbis reference price for PHCC from Australia has settled at $313/mt FOB, down by $1/mt from yesterday and down $10/mt over the past week.
The tradable level for imported PHCC in China has gone down by $5/mt to $320-325/mt CFR. And market sources said that the level is nominal with market sources having already left for the holiday. The last deal in the Chinese market was done for ex-Russia PCI at $142/mt CFR, stable from the deal price seen in late January.