US metallurgical coal export prices fell further this week as steel mills around Europe have curtailed production, by idling blast furnaces or operating at minimum capacity levels, in response to weaker demand caused by the corona virus outbreak.
US low-vol HCC price assessments fell, in particular, due to the lack of spot demand in the Atlantic met coal markets as well as worsening demand outlook for seaborne coking coal in the Indian market — one of the major Asia-Pacific export destination for the US suppliers.
Indian demand for seaborne coking coal has remained subdued, as the country’s government has enforced a total lockdown over its population of 1.3 billion people for 21 days starting March 24 as a preventative measure to control the spread of the deadly corona virus.
India’s apparent curfew which has now been extended until May 3 is likely to impact the US coking coal export market because India is a key buyer of both coking and thermal coal from the United States.
Although European spot activity continues to remain utterly dismal, but nevertheless market participants are hopeful that easing lockdown restrictions and falling Covid-19 infection rates and deaths in some countries point to the possibility of spot demand returning as soon as May.
PRICE ASSESSMENTS
The latest FOB US East Coast price of low-volatile hard coking coal is assessed at USD 117.00/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 137.75/MT on CNF India basis, after considering a USEC-India dry bulk freight rate of USD 20.75/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 118.00/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 113.00/MT FOB USEC, based on 8% ash, 0.95% sulfur and 34% volatile matter.
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