US metallurgical coal export prices have remained flat so far this week, after declining steeply late last week, amid competition from lower-priced Australian high CSR coals offered into a lackluster European market.
Several US coalmines have reportedly built up large stockpiles, as European steel mills have been rolling over fourth quarter term shipments to the first quarter of next year.
Notably, US met coal exports and Atlantic spot demand weakened in 2019, as regional steel mills cut output mainly due to lower steel margins and steel prices.
Nevertheless, US mining firms are still cautiously optimistic that anticipated consolidation and even mine closures in the US will tighten the Atlantic market in the year to come.
U.S.-China interim trade deal
In a recent turn of events, trade-related tensions between the US and China have been considerably relaxed, following an interim trade agreement signed earlier this month.
The United States will delay indefinitely the imposition of tariffs on imports from China after Washington and Beijing concluded negotiations on the interim trade agreement.
This has renewed hopes among US mining firms that China will possibly resume regular imports of US coking coal next year.
PRICE ASSESSMENTS
The latest FOB US East Coast price of low-volatile hard coking coal is assessed at USD 124.00/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 152.00/MT on CNF India basis, after considering a USEC-India dry bulk freight rate of USD 28.00/MT for delivery from the Port of Hampton Roads by Panamax vessel class.
The US high-volatile type A (HVA) coking coal price is assessed at around USD 127.00/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 122.00/MT FOB USEC, based on 8% ash, 0.95% sulfur and 34% volatile matter.
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