Prices for ex-Australia premium hard coking coal (PHCC) have retreated by the end of this week, after reaching its highest level of over $210/mt FOB in the middle of the week. The significant worsening of sentiments in China on Thursday and Friday and the increase in offers from traders have impacted the coking coal market.
A deal for 80,000 mt of low-volatile Peak Downs PHCC was done at $213/mt FOB on Wednesday for December laycan, up by $4/mt from the deal signed late last week. Also, on the same day, a bid at GlobalCoal for mid-volatile PHCC was heard at $212/mt FOB for December shipment. The latest deals in the Australian export market were signed to Chinese traders, who were expecting better demand from Chinese mills in subsequent days.
However, the situation has changed late this week. Chinese traders have started to cut offers after the weaker-than-expected stimulus measures for the real estate market. An offer for 80,000 mt of low-volatile PHCC has been reported at $206/mt FOB at GlobalCoal. Most buyers have not reacted, but it is expected that new bids will be at $195-200/mt FOB, sources have said.
In China’s import market, offers have been heard at $220-225/mt CFR, down by $5-10/mt from the middle of the week. The tradable level has been assessed at $215/mt CFR.
In India’s import market, the latest deal for mid-volatile PHCC has been heard at $210/mt CFR, for November laycan.