ArcelorMittal Sourcing awarded a Goonyella Coking Coal tender to Glencore Feb. 15, at $440/mt FOB Australia, at 100.25% of Platts PLV FOB Australia QP March 2022, for 36,000 mt of Goonyella for March 1-10 laycan, on Panamax.
The tender was the first cargo in the metallurgical coal market concluded between named counterparties, supported by S&P Global Platts metallurgical coal Market on Close assessment process.
ArcelorMittal Sourcing expressed interest in offering 72,000 mt (+/-10%) of Australian premium mid-vol Goonyella Coking Coal with a March 1-10 laycan, with load port Hay Point/DBCT in seller’s option and other terms as per usual BHP terms. A subscriber note was published Feb. 14 to give the market a one-day notice period:
While this tender was open to the wide met coal market, a total of six participants submitted firm bids by 4:45pm Singapore time. The first bid submitted by Buyer 1 was at 3:34 pm at $298/mt. The second bid by Buyer 2 was submitted at $438/mt for 18,000 mt and at 100.23% of TSI PHCC QP 30 days from BL for 54,000 mt. However, this bid was withdrawn at 3:58 pm. A third bid submitted at 4:29 pm by Buyer 3 at $440/mt for 36,000 mt and at 100.25% of Platts PLV FOB Australia, QP 30 days from BL, 36,000 mt. Buyer 4 submitted at 4:32 pm at $440/mt for 15,000 mt, and at 100% of Platts PLV FOB Australia, QP March average, 57,000 mt. A fifth bid was submitted by Buyer 5 at 4:37 pm at $365/mt. At 4:42 pm, Buyer 3 updated the QP to March 2022 with the same bid price. A final bid was submitted by Buyer 6 at 4:43 pm at $335/mt.
Between 4:45 and 5:30pm, the bid of Buyer 6 was incrementally increased seven times from $335/mt to $349/mt at 5:28 pm, with a $2/mt increment every five minutes.
At 6 pm, ArcelorMittal Sourcing notified Platts that it had decided to award the tender to Buyer 3, Glencore, at $440/mt FOB Australia for 36,000 mt, and at 100.25% of Platts PLV FOB Australia, QP March 2022, for 36,000 mt of Goonyella for March 1-10 laycan, on Panamax.
Through the tender process, real-time communication was facilitated by emails and instant messaging between Platts and the market participants.
A number of market participants said they felt the tender was market representative, with some expressing interest in participating in such tenders in the future.
Platts assessed Premium Low-Vol HCC down $3.50/mt at $439.00/mt FOB Australia Feb. 15. A bid was indicated at $420-435/mt FOB Australia for Australian premium mid-vol Goonyella. Tradeable values were placed at $430-$443/mt FOB Australia for the same type of coal. This was for a coal assessed at a $1/mt premium to Platts PLV FOB Australia.
The tender was the first cargo in the metallurgical coal market concluded between named counterparties, supported by S&P Global Platts metallurgical coal Market on Close assessment process.
ArcelorMittal Sourcing expressed interest in offering 72,000 mt (+/-10%) of Australian premium mid-vol Goonyella Coking Coal with a March 1-10 laycan, with load port Hay Point/DBCT in seller’s option and other terms as per usual BHP terms. A subscriber note was published Feb. 14 to give the market a one-day notice period:
While this tender was open to the wide met coal market, a total of six participants submitted firm bids by 4:45pm Singapore time. The first bid submitted by Buyer 1 was at 3:34 pm at $298/mt. The second bid by Buyer 2 was submitted at $438/mt for 18,000 mt and at 100.23% of TSI PHCC QP 30 days from BL for 54,000 mt. However, this bid was withdrawn at 3:58 pm. A third bid submitted at 4:29 pm by Buyer 3 at $440/mt for 36,000 mt and at 100.25% of Platts PLV FOB Australia, QP 30 days from BL, 36,000 mt. Buyer 4 submitted at 4:32 pm at $440/mt for 15,000 mt, and at 100% of Platts PLV FOB Australia, QP March average, 57,000 mt. A fifth bid was submitted by Buyer 5 at 4:37 pm at $365/mt. At 4:42 pm, Buyer 3 updated the QP to March 2022 with the same bid price. A final bid was submitted by Buyer 6 at 4:43 pm at $335/mt.
Between 4:45 and 5:30pm, the bid of Buyer 6 was incrementally increased seven times from $335/mt to $349/mt at 5:28 pm, with a $2/mt increment every five minutes.
At 6 pm, ArcelorMittal Sourcing notified Platts that it had decided to award the tender to Buyer 3, Glencore, at $440/mt FOB Australia for 36,000 mt, and at 100.25% of Platts PLV FOB Australia, QP March 2022, for 36,000 mt of Goonyella for March 1-10 laycan, on Panamax.
Through the tender process, real-time communication was facilitated by emails and instant messaging between Platts and the market participants.
A number of market participants said they felt the tender was market representative, with some expressing interest in participating in such tenders in the future.
Platts assessed Premium Low-Vol HCC down $3.50/mt at $439.00/mt FOB Australia Feb. 15. A bid was indicated at $420-435/mt FOB Australia for Australian premium mid-vol Goonyella. Tradeable values were placed at $430-$443/mt FOB Australia for the same type of coal. This was for a coal assessed at a $1/mt premium to Platts PLV FOB Australia.