Anglo American has offered Japanese customers Q2 2015 loadings of premium low-vol coking coal at USD 116 per million tonne FOB Australia, while BHP Billiton Mitsubishi Alliance offered USD 110 per million tonne FOB for April loadings.
However, these prices are lower than Q1 2015 settlements at USD 117 per million tonne FOB.
Japanese sources expressed surprise at the magnitude of the gap between the two miners’ latest offers, given that in the past BMA’s monthly offers have been a relatively good predictor of the eventual quarterly price.
One Japanese trader said BMA’s aggressive offer was an attempt by the miner to gain market share in Japan.
This theory appeared plausible considering China’s recently reduced appetite for imports and the miner’s historical reliance on the country.
China imported just 4.01 million metric otnne of coking coal in January, down 30% YoY and down 47% from the previous month.
Nonetheless, both offers remain substantially above the latest clearing spot prices into China, where recent premium low-vol HCC deals have been concluded close to USD 110 per million tonne CFR, or USD 102 per million tonne to USD 105 per million tonne FOB Australia depending on the vessel size used.
Anglo American’s offer was for its flagship premium hard coking coal German Creek, while BMA’s offers were for Peak Downs and Saraji.
Source – Platts