The United States’ metallurgical coal export offers have come down in this week, particularly for the high-volatile met coal grades, amid weak buying sentiment among European steel mills.
In fact, the European coking coal spot market has been fairly quiet since the start of the year, with minimal spot activity reported for US coals.
Traders indicated that bearish outlook for iron ore and steel has conceivably discouraged the mills to go ahead with new purchase and adopt a cautious approach to raw materials restocking.
Nevertheless, Indian demand for US coking coal remained relatively strong, with both deals and offers reported for high-vol HCC as well as other lower quality crossover coals with weaker coking properties, low reflectance and dilatation.
Consequently, US suppliers have been actively focused on increasing their sales volumes into Asia.
Notably, Indian coking coal demand has gained prominence as of late, with a growing fondness for US high-volatility coals, in particular.
PRICE ASSESSMENTS
The latest FOB US East Coast price of low-vol hard coking coal is assessed at around USD 187/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 214.50/MT on CNF India basis, after considering a USEC-India dry bulk freight rate of USD 27.50/MT for Panamax vessel class.
The US high-volatile type A (HVA) coking coal price is assessed at around USD 203/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 167/MT FOB USEC, based on 8% ash, 0.95% sulfur and 34% volatile matter.
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