US coking coal export prices dropped further this week, as unsold spot cargoes of August and September-laycans exerted pricing pressure in the Asia-Pacific market.
Atlantic coking coal markets continued witnessing scant signs of fresh activity without any new spot offer, although certain contract-based trade activities had been noticed.
Weaker demand in the European market, amid subdued steel buying, restricted price increases for US coals. Limited steel output rates at several European mills has severely hit contract and spot volumes for coking coal exports from the United States.
The European spot demand for US-origin coking coal had been weakening since the last year, as regional steel mills reduced output citing lower steel margins and steel prices. Intensifying competition from lower-priced Australian high CSR coals offered into a lackluster European market has further aggravated the plight of US coking coal exporters.
US coalmining firms are still cautiously optimistic that increased consolidation and mine closures across the European Union and the United States would tighten coking coal supplies into the Atlantic market in the near future.
Furthermore, expectations are rife that the seaborne coking coal market would eventually see demand recover sufficiently from India, the Atlantic and Northeast Asian contract buyers, limiting availability for spot sales and driving up prices.
PRICE ASSESSMENTS
The latest FOB US East Coast price of low-volatile hard coking coal is assessed at $102.50/t, 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 $132.50/t on CNF India basis, after considering a USEC-India dry bulk freight rate of $30.00/t 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 $105.00/t 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 $97.00/t FOB USEC, based on 8% ash, 0.95% sulfur and 34% volatile matter.
_
By Aditya Sinha
Leave a Reply