February 2012 | Steel Raw Materials
Coking coal prices continue to soften: Coke and Coking Coal Highlights
In a buyers’ market and in order to move tonnage, miners will need to make concessions on price at least into next quarter.
Spot prices in the international coking coal market continued to display signs of softening this week. Low-vol. hard coking coal out of Australia and the USA is now around $225-230/tonne FOB. We are hearing of various offers and transactions in the $220-230/tonne FOB range, although MBR believes the trend is toward the bottom of that range. Miners are looking to hold their offers higher but this is now a buyers market and in order to move tonnage, miners will need to make concessions on price at least into next quarter. Demand out of China is still weaker than usual as stocks are high in relation to steel output. Lately, there has been limited activity in the seaborne market.
Contract talks give indication of settlements next quarter
MBR understands that these prices are for the premium grades as lower quality coals are experiencing weaker demand. Spot prices for...
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