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Metallurgical coal quarterly price roundup Q1 2017: Early settlement protects sellers from falling spot prices


Metallurgical coal quarterly price roundup Q1 2017: Early settlement protects sellers from falling spot prices

Report summary

After the prolonged delays for Q4 2016 contracts, the Q1 2017 negotiations were over in a flash. The extreme volatility and uncertainty, as well as falling spot prices, offered encouragement for both sides to agree terms early this time around. The US$285/t HCC price was the highest since Q4 2011, and was an Australian dollar record AUD385/t. Spot price falls accelerated after the settlement, and were about US$100/t lower by 12th January, as improved supply and weaker northern hemisphere demand undermined the price gains of Q4. The large differential between contract and spot prices has reignited debate about the validity of quarterly contracts, and their long term survival. Spot prices should maintain a discount through 2017 as prices continue to trend down, adding fuel to the discussion.

What's included?

This report includes 2 file(s)

  • Metallurgical coal quarterly price roundup Q1 2017: Early settlement protects sellers from falling spot prices PDF - 267.91 KB 4 Pages, 1 Tables, 0 Figures
  • insight metallurgical coal quarterly price settlement q1 2017.xls XLS - 231.50 KB

Description

This Coal Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

Participants, suppliers and advisors can use it to look at the trends, risks and issues within the coal industry and gain an alternative point of view when making decisions.

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  • SSCC and PCI price differential to HCC at all time high
  • Buyers contracting with alternative sources
  • Contract versus spot argument heats up as price difference grows

In this report there is 1 table or chart, including:

  • SSCC and PCI price differential to HCC at all time high
  • Buyers contracting with alternative sources
  • Contract versus spot argument heats up as price difference grows
    • Quarterly and monthly prices for range of metallurgical coal brands delivered to Asia
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