Singapore (Platts) - Miner Anglo American on Friday settled its April-June contract for PCI coal with a South Korean steelmaker at $275/mt FOB, 53% higher than the price for the January-March contract, market sources said Monday.
No immediate comment could be obtained from Anglo American.
The price covers new tonnage of the company's flagship PCI brand Foxleigh. Part of Anglo American's PCI output in the second quarter of the year, however, will be shipped as carryover tonnage from the flood-hit January -March quarter.
The new deal reportedly stipulates that Anglo American is to supply up to half of its undelivered Q1 PCI tonnage, originally priced at $180/mt. The deal was also said to include tonnage priced for six months, though no further details on this could be obtained.
The latest price of $275/mt is 83.3% of the headline hard coking coal price for Q2 of $330/mt, which was also settled by Anglo American in this quarter.
This is roughly in line with expectations, following Q2 semi-soft coking coal deals struck by Rio Tinto and Xstrata at $264/mt and $254/mt FOB respectively. In the last year, PCI has typically settled 3-6% above semi-soft coking coal.
Australia's Macarthur Coal is said to be still negotiating its own PCI deal in Japan, and is understood to have tabled an offer at 85% of the HCC term contract, or at $280.50/mt FOB.
Other Australian PCI producers, including Jellinbah and Westfarmers Resource's Curragh, were heard closing in on deals of their own near the $275/mt FOB level.
Anglo American's Foxleigh is a low-volatile PCI with 12.5% volatile matter, 8.4% ash, 0.55% sulfur, total carbon of 91%, a calorific value of 7,850 and a Hardgrove Grindability Index of 77.
Tags : raw material, Macarthur Coal Ltd, steel mills