Posco settles 4Q PCI contract price at $145/t fob
South Korean steel producer Posco has agreed to a contract price of $145/t fob Australia for the October-December quarter with Australian producer Realm Resources for low-volatile pulverised coal injection (PCI) brand Foxleigh.
The settlement is up from $139.50/t fob Australia in the third quarter for the same brand. Posco and other northeast Asia steelmakers, including Nippon Steel and Sumitomo Metal (NSSMC), use a three-month average of premium hard coking coal index as reference for PCI negotiations.
The Argus index for premium hard low-volatile coking coal averaged $213.43/t fob Australia in the September-November period, up from the June-August average of $189.39/t referenced in third-quarter PCI contract price discussions.
"Suppliers were in a good position because the premium hard coking coal spot prices were also going up this week and they might have had support for PCI contract prices at $150/t very soon," a Japanese trader said.
Negotiations for fourth-quarter semi-soft coking coal contract prices between Posco and NSSMC and Australian producers — including Stanmore, Yancoal and Glencore — are expected to continue next week, targeting a settlement before the year-end holidays.
Japan's JFE Steel follows a separate price framework and has recently begun first-quarter 2019 PCI contract discussions. The company settled fourth-quarter PCI contract prices at $139/t fob Australia in September.
source: Argus Media
Top News
Glencore in talks to sell Philippine copper smelting unit
Rasul Khalife Soltani, Secretary of the Iranian Steel Producers Association on the sidelines of the 1403 Steel Symposium:
Mobarakeh steel is producing green steel through scrap recycling
India’s record gold import said to be due to calculation error
Norilsk Nickel plans to sell all it produces in 2025
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Norge Mining acquires Europe’s largest natural graphite producer
Mercuria partners with Zambia on metals trading venture
Aluminum price falls to one-month low in wider commodity slump
Lure of Anglo’s copper mines could test BHP’s spending resolve
Copper giant Peru foresees another production plateau in 2025
Iron ore price weakens as Australia flags return to sub-$100 prices
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Mercuria partners with Zambia on metals trading venture
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Triple Flag to acquire royalty on Tres Quebradas lithium project
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Aluminum price falls to one-month low in wider commodity slump
India’s record gold import said to be due to calculation error
Lure of Anglo’s copper mines could test BHP’s spending resolve
Iron ore price weakens as Australia flags return to sub-$100 prices
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Triple Flag to acquire royalty on Tres Quebradas lithium project
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Aluminum price falls to one-month low in wider commodity slump
India’s record gold import said to be due to calculation error
Glencore in talks to sell Philippine copper smelting unit
