Prices for ex-Australia premium hard coking coal (PHCC) have continued to soften, though the decline has been indicative as there has been a lack of trade, though offer volumes are still ample. Some Asian buyers have been trying to re-export previously purchased cargoes, also putting pressure on market sentiments.
After a deal done for 36,000 mt of low-volatile PHCC Peak Downs at $215/mt FOB last Friday, trading has been very limited. A few market sources believe that offers directly to some Asian end-users have been at $210/mt FOB for PHCC, but even this will hardly result in deals. However, the latest bid at GlobalCoal for 40,000 mt of Goonyella mid-volatile PHCC was at $200/mt FOB for September laycan this week. “I think buyers are targeting this level and are not in a hurry,” one trader said.
At least two end-users have been offering 70,000 mt of PHCC each in the Asian market for prompt shipment, signaling that demand is worse than supply. The latest trades on ex-Australia FOB basis have been done by traders, while end-users’ bids are lower.
An offer for ex-Australia mid-volatile PHCC to China has been heard at $225/mt CFR for August laycan, while last week a deal was done at $230/mt CFR.
The SteelOrbis reference price for ex-Australia PHCC has settled at $210/mt FOB, down by $5/mt from the previous day.