Posted on 28 Nov 2017
South Korean steelmaker POSCO has settled its fourth-quarter low vol pulverized coal injection (PCI) contract price with Square Resources at $135/mt FOB Australia, a source at POSCO confirmed to S&P Global Platts.
This was for the low vol PCI brand Foxleigh for October-December 2017.
The source said that the PCI price had been considered in relation to the premium coal prices, and that with the current tightness in the market, the prices are expected to go up.
In September, Japanese mill JFE Steel settled its Q4 price for low vol PCI with 12-14% VM, 9%-10% ash, at $127.50/mt FOB Australia.
Market participants have remarked on the upheaval in the quarterly benchmark system in the Northeast Asian metallurgical coal market in recent months for PCI after the region moved to indexation for prime hard coal earlier this year, with mills no longer following a single price.
“The benchmark system is breaking down,” one miner said, referring to the PCI quarterly price.
One source close to the matter said that while the price would be offered to other buyers, it is uncertain if it would be followed.
Foxleigh mine was previously 70% owned by Anglo American, who later sold its stake to a consortium led by Taurus Fund Management.
Foxleigh PCI is marketed by Square Resources.
