Japanese steelmaker settles April-June Low Vol PCI, semi soft contract: sources

Singapore — A major Japanese steelmaker has settled its pre-second quarter April-June price for benchmark Australia Low Vol pulverized coal injection (PCI) at $110.00/mt FOB Australia, and for its semi-soft contracts at $103.70/mt FOB Australia, market participants told S&P Global Platts Tuesday.

The steelmaker could not be reached for confirmation.

Over the December-February period, the benchmark Platts Premium Low Vol FOB Australia averaged $147.49/mt FOB Australia, up $4.90/mt FOB Australia from the September-November period. This would put the pre-quarter PCI settlement price at a 74.58% premium to hard coking coal prices, and for semi-soft at 70.31%.

"This pre-second quarter price is more like a roll-over from the first quarter settlement price," an end user said. "Maybe this is a level that both parties could accept given the uncertainties seen in both demand and supply side."

The same steelmaker previously settled its Q1 (January-March) contracts for benchmark Australia Low Vol PCI at the same price level, $110.00/mt FOB Australia for Australia Low Vol PCI and $103.70/mt FOB Australia for semi-soft, settled on March 9.

Platts on Tuesday assessed Premium Low Vol at $159.00/mt FOB Australia, Low Vol PCI at $96.25/mt FOB Australia and semi soft at $81.25/mt FOB Australia.