Prices for ex-Australia premium hard coking coal (PHCC) have increased slightly in a recent deal and in some bids, signalling that traders are a little more confident that miners will not go for any further declines, especially during the current rainy weather.
A deal for 75,000 mt of ex-Australia Goonyella mid-volatile PHCC has been done at $189.1/mt FOB for late March laycan. This is up from the previous deal reported at $187.5/mt FOB a week ago. Also, a bid for 75,000 mt of low-volatile Peak Downs PHCC was heard at $190/mt FOB on Wednesday, increasing by $1/mt from the previous day. An offer for similar grade low-volatile material was at $194/mt FOB at GlobalCoal platform.
In general, however, the market conditions in the Australian PHCC market are still difficult with weak demand from India, an expected further decline in coke prices in China, and ex-US coal volumes redirected from China after the announcement of tariffs. However, last week shipments from Dalrymple Bay Coal Terminal were temporarily limited due to heavy rains and there have been strong signs that, even if demand does not improve, sellers are unlikely to cut their prices.
The SteelOrbis reference price for ex-Australia PHCC has settled at $189.5/mt FOB, up by $2/mt since late last week.