US hard coking coal spot pricing has weakened further over the past week, as FOB Australia prices fell, dented by prolonged subdued demand in the Asia-Pacific region.
US high-volatile coking coals are still being offered at considerable discounts to indexes, which is majorly attributable to the bearish steel industry.
As the steel industry continues to suffer from low demand, metallurgical coke and coal prices have been severely affected.
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.
In fact, the Atlantic metallurgical coal export markets have been hit by weaker steel prices and lower steel mill utilization rates right from the first half of 2019.
PRICE ASSESSMENTS
The latest FOB US East Coast price of low-volatile hard coking coal is assessed at USD 143.50/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 177.75/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 145.50/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 134.50/MT FOB USEC, based on 8% ash, 0.95% sulfur and 34% volatile matter.
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