The United States’ metallurgical coal export prices have gained strength last week on the back of high-priced offers emerging in the wider seaborne market coupled with limited availability of key grades for immediate shipment.
In China, an improving Chinese steel outlook alongside continued futures trade for premium-grade contracts at higher prices have pushed up Premium HCC index linked prices.
Accordingly, typical grade differentials moved up in line with the futures and spot premium hard coking coals.
Moreover, demand for lower-priced coals such as second-tier materials and low-CSR grades are anticipated to grow, with the second-tier HCC 64 reference index rising earlier last week.
Furthermore, scarcity in usual brands of high-vol A and high-vol B could lead to crossover coal blends being the only material available for late second-quarter loadings.
Meanwhile, import demand for US coking coals from the European steel mills has been fairly subdued, with minimal spot activity reported since the start of the year.
Market sources suggest that the near-term bearish outlook for iron ore and steel has conceivably discouraged the European mills to procure actively and instead adopt a cautious approach to raw materials restocking.
PRICE ASSESSMENTS
The latest FOB US East Coast price of low-vol hard coking coal is assessed at USD 184/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 213.25/MT on CNF India basis, after considering a USEC-India dry bulk freight rate of USD 29.25/MT for Panamax vessel class.
The US high-volatile type A (HVA) coking coal price is assessed at around USD 200/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 162/MT FOB USEC, based on 8% ash, 0.95% sulfur and 34% volatile matter.
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