Research

Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

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August 2011 | Steel Raw Materials


Third-quarter coking coal contracts begin to settle: Coke and Coking Coal Highlights


Coking coal prices declined from the first and second quarter contracts in response to the fundamentals.

Quarterly coking coal contract prices started to fall into place for the third quarter in the past week. As expected, prices declined from the first and second-quarter contracts in response to the fundamentals. The initial settlement was struck between Anglo American and South Korean POSCO, resulting in a 9.5% cut in the premium hard coking coal prices to $285/tonne FOB for Queensland German Creek coal. Moranbah North coal out of Queensland is now priced at $280/tonne FOB. Foxleigh premium PCI coal from Queensland is priced at $208/tonne FOB, down by $22/tonne or 9.6%.

We expect further contracts to fall into line with 9.5-9.7% declines for Australian material. The contract price cuts were largely expected as demand remains relatively firm, but supplies have come back on line following the flooding that constrained shipments earlier in the year. Over the past...

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