POSCO Coking Coal Prices in 3Q 7% Higher than 2Q

SHANGHAI, Jun. 8th (SMM) -- Australia-based coal producer Anglo American and South Korea-based POSCO signed a contract of coking coal and PCI coal prices during July to September period on June 4th. FOB for Hard coking coal with low volatility is USD 225/mt, up 7% compared to USD 210/mt during April and June, while FOB for PCI coal is USD 162/mt, up 5.7%.

Although contract prices for 3Q rose from 2Q, Steelease believes international long-term contract prices rose as the flood and strike in Australia affected output, not due to improving markets. Besides, coking coal of long-term contract is top class brands, with prices remaining high for a long term and limited purchasing from Chinese customers. In this scenario, any affects of increases in long-term contract prices on China’s imported coking coal markets will be limited in 3Q. Imported coking coal price trends depend on demand from Chinese customers.