US thermal coal export prices have held fairly steady over the past couple of days on growing demand in Southeast Asia; coupled with improved spot activity in Europe, even though the European natural gas market is still perceived as oversupplied.
Additionally, market sources predict that the Atlantic thermal coal markets are expected to witness short-term bullish sentiment in the coming weeks with the likelihood of increased coal burn in Europe, as the recent heat wave could exhaust stockpiles faster.
Nevertheless, certain sources maintain a bearish outlook for US thermal coal prices in the coming months because of the adequacy of natural gas supplies in Europe.
Up until recently, European coal imports were seen declining, but thermal coal pricing in the Atlantic basin has been very strong over the last 18 months to two years, despite the drop in European imports.
Elsewhere in other key global markets, US coal exports are increasing to meet the growth in demand, especially from Asia and the Middle East.
However, Indonesian coalminers are also ramping up production levels for the seaborne market, which could potentially counteract the upsurge in US coal exports.
Meanwhile, freight rates of Capesize and Panamax vessels have hit a multi-year record high on the back of strong iron ore prices and demand for moving grains out of the Atlantic Basin.
PRICE ASSESSMENTS
| FOB Baltimore
6,000 NAR |
FOB Hampton Roads
6,000 NAR |
FOB New Orleans
6,000 NAR |
|
| Week 28 (08 Jul – 14 Jul) | 52.17 | 72.00 | 40.00 |
| Week 29 (15 Jul – 21 Jul) | 51.30 | 72.00 | 40.00 |
N.B.: All prices are in USD/MT
Logistics
| Load Port | Unload Port | Vessel Class | Cargo Intake (MT) | Freight Rate (USD/MT) |
| Baltimore, Maryland, USA | Mundra , Gujarat, India | Capesize | 149,000 | 23.05 |
| New Orleans, Louisiana, USA | Mundra , Gujarat, India | Panamax | 65,000 | 36.06 |
| New Orleans, Louisiana, USA | Dhamra , Odisha, India | Panamax | 65,000 | 34.64 |
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