There is every indication that a global benchmark hard coking coal settlement of $170-175/metric tonne FOBT for October-December is on the verge of being completed. It appears that Asian buyers have held fast in their price demands, and one can understand why. A series of bearish developments have combined to push the market southward more decisively than any time since the global economic meltdown late in 2008.When the calendar flips to October, all bets are off.A source indicated that Canadian coal has been offered for delivery during the October-December quarter at $172/tonne, though there are suggestions the price would be tied to a volume increase. Given current demand, it's not clear that can get done. Australian hard coking coal surely appears to be primed for a $175/tonne settlement.A coking coal source described the current marketplace as the "Little Big Horn of 2012."
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