Chinese steel producers Tuesday reported higher spot offers by Australian producers, just a week before contract talks for the next quarter are due to begin.
Platts reference prices were kept in check somewhat by end-user resistance to these offers and comparatively low cargo offers from the US and Canada. HCC 64 Mid-Vol, Premium Low Vol and Peak Downs Region all rose by $1 to $203.50/mt, $221.50/mt and $234.50/mt FOB Australia, respectively.
BHP Billiton-Mitsubishi Alliance's Peak Downs brand, also referred to as Ding Feng by some China sources, was heard offered as high as $260/mt CFR China by a mill source. No confirmation could be obtained from BMA.
Xstrata's Oaky Creek, also known as Xiangshuwan, was reportedly on offer at $255/mt CFR China for a Panamax loading in December. Trader Glencore, which markets this coal, could not immediately be reached for confirmation either.
These offers were typically $10-15/mt higher than what mills said they would consider paying. "I don't think these prices are reasonable," a Singapore-based trader commented. "It's negotiation time, so it's good timing for them (the miners)."
In comparison, offers from the US and Canada appeared to be attractively priced, albeit for different quality coal. Some traders were taking positions of US mid-vol HCCs with less than 1% sulfur, and offering them typically at $225/mt CFR China for December cargoes. One such offer was for a Panamax-load while another was for a Capesize. "The Americans appear to be the most desperate to sell," a trader said.
Another Chinese mill commented that even at these prices, she couldn't accept, while an Indian steelmaker who received the same offer (at $195/mt FOB East coast US) said that blending was an issue when it came to US coals.
Other offers included a US high-vol high fluidity coal comparable to BMA's Gregory on offer at $205/mt CFR China for December shipment, and a 27.5% VM, 1% sulfur at $210/mt CFR.
Last week, a Canadian HCC with 72% CSR, 23.5% VM, 0.5% sulfur and CSN of 7.5 was offered to a North China mill at $220/mt CFR, a Shandong mill reported. This is believed to be Teck Coal's Standard brand, although this could not be confirmed.
There has been much talk of the possibility of monthly pricing for coking coal being offered to non-Chinese customers from next quarter.
An Indian steelmaker did not appear overly concerned about the idea. "We were afraid of quarterly pricing but now we are used to it," he said. "But we are not the leaders. Frankly, our policy for now is to follow the lead of the Japanese, but who knows what will happen."
Platts reference prices were kept in check somewhat by end-user resistance to these offers and comparatively low cargo offers from the US and Canada. HCC 64 Mid-Vol, Premium Low Vol and Peak Downs Region all rose by $1 to $203.50/mt, $221.50/mt and $234.50/mt FOB Australia, respectively.
BHP Billiton-Mitsubishi Alliance's Peak Downs brand, also referred to as Ding Feng by some China sources, was heard offered as high as $260/mt CFR China by a mill source. No confirmation could be obtained from BMA.
Xstrata's Oaky Creek, also known as Xiangshuwan, was reportedly on offer at $255/mt CFR China for a Panamax loading in December. Trader Glencore, which markets this coal, could not immediately be reached for confirmation either.
These offers were typically $10-15/mt higher than what mills said they would consider paying. "I don't think these prices are reasonable," a Singapore-based trader commented. "It's negotiation time, so it's good timing for them (the miners)."
In comparison, offers from the US and Canada appeared to be attractively priced, albeit for different quality coal. Some traders were taking positions of US mid-vol HCCs with less than 1% sulfur, and offering them typically at $225/mt CFR China for December cargoes. One such offer was for a Panamax-load while another was for a Capesize. "The Americans appear to be the most desperate to sell," a trader said.
Another Chinese mill commented that even at these prices, she couldn't accept, while an Indian steelmaker who received the same offer (at $195/mt FOB East coast US) said that blending was an issue when it came to US coals.
Other offers included a US high-vol high fluidity coal comparable to BMA's Gregory on offer at $205/mt CFR China for December shipment, and a 27.5% VM, 1% sulfur at $210/mt CFR.
Last week, a Canadian HCC with 72% CSR, 23.5% VM, 0.5% sulfur and CSN of 7.5 was offered to a North China mill at $220/mt CFR, a Shandong mill reported. This is believed to be Teck Coal's Standard brand, although this could not be confirmed.
There has been much talk of the possibility of monthly pricing for coking coal being offered to non-Chinese customers from next quarter.
An Indian steelmaker did not appear overly concerned about the idea. "We were afraid of quarterly pricing but now we are used to it," he said. "But we are not the leaders. Frankly, our policy for now is to follow the lead of the Japanese, but who knows what will happen."
