End-of-Day Market Summary PHCC – June 24, 2025

End-of-Day Market Summary – June 24, 2025

Market dislocated and defensive – With FOB-China cargoes undercutting traditional sellers, and buyers questioning premiums, the met coal market is under structural price pressure. Fragmented demand and rising supply continue to weigh on sentiment.

• Chinese End User Buys Canadian PMV at 150 CFR China: A Canadian PMV deal branded "Premium" was concluded into China. Adjusting for 3% import duty and brand differentials, the estimated FOB Australia equivalent is $145–150, highlighting just how wide the CFR/FOB gap remains for Aus PHCC.

• Canadian PHCC Floods FOB China Market: Several Chinese end users are now reselling Canadian PHCC cargoes either ex-stock or FOB China, creating direct competition with trader-held positions. This is reportedly putting pressure on miners trying to sell directly into the market.

• CFR Market Dislocation Spurs Backlash: Ex-China buyers express frustration over paying $30+/t more than Chinese end users—raising questions on benchmark effectiveness and market fragmentation.

• No Demand for PLV Despite Offers: Both Chinese PLV and Australian PLV remain unsold, with no meaningful buying interest observed.

• DCE Drops on Recovery and Macro Weakness: The Chinese futures market corrected lower, driven by mine recovery headlines and the global oil price decline, further weakening sentiment.

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