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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


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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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