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5 Pages

PCI coal margins on a knife-edge


PCI coal margins on a knife-edge

Report summary

PCI quarterly prices have taken a battering, falling to US$73/t in Q3, not seen since the US$68/t annual contract price of 2007. Spot prices are lying closer to 2004 levels at around US$63/t. PCI producer margins are wafer thin.  At US$73/t over 30% of the trade is making a cash loss and at current spot prices that figure rises to almost 80%.  Chinese steel demand, unforgiving trade policies and, importantly, greater supply from China and Russia are to blame.

What's included?

This report includes 2 file(s)

  • PCI coal margins on a knife-edge PDF - 349.31 KB 5 Pages, 0 Tables, 4 Figures
  • Insight PCI coal margins on a knife-edge.xls XLS - 195.00 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.

Wood Mackenzie is the only coal industry service provider that offers a market outlook integrated with other sector analyses, including macroeconomics, coal supply, steel markets and gas and power markets.

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  • PCI pricing has lost support
    • PCI margin curve @ contract price of US73/t FOB
    • PCI margin curve @ spot price of US63/t FOB

In this report there are 4 tables or charts, including:

  • PCI pricing has lost support
    • PCI, SSCC and Thermal coal prices (US$/t)
    • PCI premium to Thermal (US$/t)
    • PCI coal margins on a knife-edge: Image 3
    • PCI coal margins on a knife-edge: Image 4
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