The United States’ metallurgical coal export prices were mostly stable over the past two weeks, as both buyers and sellers have remained relativity silent in the Atlantic market, given the lack of demand for spot deals of late.
In addition, lower steel demand in Europe is said to be inhibiting new positions for coking coal restocking.
Market sources indicated that steel mills and coke plants are already well covered with coal positions for the time being, and may not be looking for spot material until at least the second quarter.
Demand may originate from end-users in Europe and South Africa to a certain extent, but demand for substantial increases in US shipment volumes may be overplayed.
Meanwhile, uncertainty on iron ore prices, particularly for pellets, are leading concerns for the industry.
PRICE ASSESSMENTS
- The latest FOB US East Coast price of low-vol hard coking coal is assessed at around USD 188/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 216/MT on CNF India basis, after considering a USEC-India dry bulk freight rate of USD 28/MT for Panamax vessel class.
- The US high-vol A coking coal price is assessed at around USD 206/MT FOB USEC, based on 7% ash, 0.85% sulfur and 32% volatile matter.
- The US high-vol B coking coal price is assessed at around USD 169/MT FOB USEC, based on 8% ash, 0.95% sulfur and 34% volatile matter.
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