US coking coal export spot prices have continued their downward movement this week on tepid demand from European, Indian and other regional steel mills.
A seasonal summer holiday period in Europe and North America has also limited/impacted the demand momentum for US coals in the absence of many large traders and end-user buyers from the trade market.
Further, the persistent decline in pricing for Australian premium hard coking coal in the Asia-Pacific markets has driven down offer prices of Atlantic metallurgical 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.
The Atlantic met coal export markets have been hit by weaker steel prices and lower steel mill utilization rates over the first half of 2019.
Indian demand scenario has turned lackluster lately and any considerable improvement in import volumes is expected only post monsoon in the month of September.
PRICE ASSESSMENTS
The latest FOB US East Coast price of low-vol hard coking coal is assessed at USD 165.00/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 202/MT on CNF India basis, after considering a USEC-India dry bulk freight rate of USD 37.00/MT for delivery by Panamax vessel class.
The US high-volatile type A (HVA) coking coal price is assessed at around USD 172.00/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 148.00/MT FOB USEC, based on 8% ash, 0.95% sulfur and 34% volatile matter.
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