US metallurgical coal prices have remained relatively unmoved over the past week, after being steadily driven down by a lack of prompt spot demand for higher quality coals in the European markets and the persistent weakness in the Australian benchmark premium hard coking coal prices.
The steep decline in FOB pricing for Australian premium hard coking coal in the Asia-Pacific markets has pushed down prices for US high-vol A and Low Vol coking coal.
In particular, the fob price of US high volatile A coking coal weakened relative to Australian low-vol premium HCC, with prices continuing to fall through the first half of the year.
The Atlantic met coal export markets have been hit by weaker steel prices and lower steel mill utilization rates over the first half of 2019.
A seasonal summer holiday period in Europe and North America has also limited/impacted the demand momentum for US coals in the absence of many large traders and end-user buyers from the trade market.
Indian demand scenario has turned lackluster lately and any considerable improvement in import volumes is expected only post monsoon in the month of September.
PRICE ASSESSMENTS
The latest FOB US East Coast price of low-vol hard coking coal is assessed at USD 153.00/MT, based on 58% coke strength after reaction (CSR), 8% ash, 0.8% sulfur and 19% volatile matter material.
For Indian buyers, the above price amounts to USD 187.25/MT on CNF India basis, after considering a USEC-India dry bulk freight rate of USD 34.25/MT for delivery by Panamax vessel class.
The US high-volatile type A (HVA) coking coal price is assessed at around USD 157.00/MT FOB USEC, based on 7% ash, 0.85% sulfur and 32% volatile matter.
The US high-volatile type B (HVB) coking coal price is assessed at around USD 143.00/MT FOB USEC, based on 8% ash, 0.95% sulfur and 34% volatile matter.
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