The United States’ metallurgical coal export prices have remained fairly stable this week with limited export activity following spot trade, as uncertainty around US East Coast exports eased with the passing of Hurricane Florence.
Moreover, ongoing industrial discussions on domestic US settlements, as well as US and Canadian long-term contract business are drawing market participants’ attention.
Notably, US met coal prices hit a peak during the build up to Hurricane Florence last week — but, with gradually improving weather conditions over the weekend and the reopening of the US’ main shipping channel at the Virginia Capes, US coking coal supplies to Asia, Europe and Atlantic markets are expected to improve.
At present, US coal miners are reportedly keen to boost sales to new customers in Eastern Europe, India and Southeast Asia as well as compete better with new entrants such as Mozambique.
Higher global demand in spot markets for coking coal, along with US supply disruption and lengthy vessel queues have underpinned US coking coal prices.
PRICE ASSESSMENTS
- The latest FOB price of US East Coast low-vol hard coking coal is assessed at around USD 193/MT, based on 58% CSR, 8% ash, 0.8% sulfur and 19% volatile matter.
- For Indian buyers, the above price amounts to USD 226/MT on CNF India basis, after considering a dry bulk freight rate of USD 33/MT for Panamax vessel.
- US high-vol A coking coal is assessed at around USD 201/MT FOB US East Coast, with 7% ash, 0.85% sulfur and 32% volatile matter.
- US high-vol B coking coal is assessed at around USD 168/MT FOB US East Coast, with 8% ash, 0.95% sulfur and 34% volatile matter.
Source: CoalMint Research
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