Prices for ex-Australia premium hard coking coal (PHCC) have declined further this week amid the continuing demand-supply imbalance. Some market sources believe that prices are near to the bottom, though some slight further decrease is not excluded.
A deal for 75,000 mt of mid-volatile PHCC from Australia was done at $225/mt FOB in the spot market to an Indian mill for mid-May laycan. Also, apart from this, an offer for a similar volume for late April-early May laycan has been heard at $230/mt FOB on Global Coal, while a bid for a similar volume of mid-volatile PHCC has been heard at $210/mt FOB at the platform, with bids up to $220/mt FOB in the spot market, according to sources. This means that ex-Australia PHCC prices have lost $20/mt over the past week. One trader said he sees the bottom at $220/mt FOB, while another source stated that further $10-15/mt cuts are possible.
The Chinese market has been quiet this week and the tradable level for premium hard coking coal has been assessed at $250-255/mt CFR, down by $5-10/mt over the past week. The latest tradable levels for ex-China CSR65 coke in the export market have been at $290-295/mt FOB, down by $9.5/mt on average over the past week.