The United States’ metallurgical coal export prices have continued to hold steady on the back of stronger than expected domestic demand amid balanced supply with first quarter production at certain met coalmines weaker year-on-year.
Moreover, Atlantic met coal spot markets were supported by a tighter Asia-Pacific market for premium HCC.
Furthermore, increased demand for US met coals was observed in Asia and China, according to multiple sources.
In this context, it is worth mentioning that US coal sales to Asia has been largely underpinned by the persistence of Australian supply uncertainty over climatic problems, notwithstanding relatively higher freight rates for delivery into the region.
US Coking Coal Exports Up in March
US coking coal exports have surged by a whopping 53% on a monthly basis to 4.98 million tonnes (MnT) in March, as compared to 3.25 MnT in February, as per the latest vessel lineup data compiled by CoalMint Research.
Notably, coking coal exports from the US were driven by increased shipments to East Asian nations – particularly Japan, South Korea and China, per US Census Bureau data.
On the other hand, India is also growing in significance as a destination for US coking coal—shipments to India more than doubled on the month to 641,777 MT in March.
PRICE ASSESSMENTS
The latest FOB US East Coast price of low-vol hard coking coal is assessed at USD 184.50/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 213.50/MT on CNF India basis, after considering a USEC-India dry bulk freight rate of USD 29.00/MT by Panamax vessel class.
The US high-volatile type A (HVA) coking coal price is assessed at around USD 201.50/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 163.00/MT FOB USEC, based on 8% ash, 0.95% sulfur and 34% volatile matter.
Source: CoalMint Research
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