Despite buyers’ firm resistance, Russian suppliers of pulverized coal injection (PCI) have ultimately succeeded in getting higher prices in their latest deals. Specifically, in the beginning of last week, new PCI offers which have been voiced at considerably higher levels than those which were accepted in the previous trades have been considered by the Chinese customers absolutely unworkable. “My customers are bidding for a cargo at $240/mt CFR but a seller says he has bids at above $250/mt CFR. As of today, I cannot believe it is true,” an international trader commented last Wednesday. However, subsequently, at least two deals at higher prices have surfaced in the market. In particular, SteelOrbis has learned that last week the Russian company Mechel has sold a 21,000 mt of PCI, with prompt shipment, at $259/mt CFR, while another company has booked 40,000 mt of PCI, with prompt shipment likewise, at $260/mt CFR. Indian steelmakers claim that they have continued to receive ex-Russia PCI offers at $250/mt CFR, without mentioning the name of a supplier.
Meanwhile, as of Monday, December 26, coking coal futures prices at Dalian Commodity Exchange (DCE) are at RMB 1,898.5/mt ($272/mt), up 3.2 percent compared to December 23, while coke futures increased by 2.9 percent, to RMB 2,722.5/mt ($391/mt).
$1 = RMB 6.9647