US thermal coal export prices have remained mostly stable over the past week, as negative demand outlook persisted in the Atlantic region, owing to oversupply issues coupled with adequate stockpiles at power plants across Europe.
Multiple sources concurred that the demand for coal barges dispatched to power plants had been slow over the last week, while there was still plenty of coal looking to arrive in the ARA region.
In addition, an array of coal vessels are scheduled to arrive at Dutch terminals of Amsterdam, Rotterdam and Vlissingen with an estimated total dry weight tonnage of 561,132 MT, potentially indicating that stock levels will continue to stay high in the short-term.
It is worth mentioning in this context that this has been a key contributing factor behind the weak market so far this year.
However, some traders are heard to be optimistic about a possible rebound in Atlantic thermal coal prices, albeit rather slowly, considering chances of a turnaround after having touched rock-bottom in June.
Indian spot market activity has also considerably reduced at present, leading to lower US coal offtakes.
Nevertheless, India-based buyers are apparently more inclined towards US thermal coal as compared to Indonesian mid-high calorific value coals of similar heating value.
PRICE ASSESSMENTS
| FOB Baltimore
6,000 NAR |
FOB Hampton Roads
6,000 NAR |
FOB New Orleans
6,000 NAR |
|
| Week 29 (15 Jul – 21 Jul) | 51.30 | 72.00 | 40.00 |
| Week 30 (22 Jul – 28 Jul) | 51.30 | 73.00 | 41.00 |
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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