US Coking Coal Offers Stable In Balanced Market

The United States' metallurgical coal export prices have stayed stable so far this week, following a slight divergence in the price movements of the two high-volatile grades at the close of last week.

Last week's closing price assessments saw US high-vol B prices dropping by a dollar day-on-day, as producers reportedly sold trial volumes at discounted values - to cope with the market competitiveness.

On the contrary, however, the US high-vol A prices rose, with certain producers booking trades at higher level, and further inquiries heard from South American and Turkish mills.

Although suppliers are seeing the US met coal market as well balanced at present, potential disruptions to coal exports due to the impact of tropical cyclone Idai in Mozambique could upset the existing market equilibrium.

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 remains unchanged at USD 187/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 214.50/MT on CNF India basis, after considering a USEC-India dry bulk freight rate of USD 27.50/MT for Panamax vessel class.

The US high-volatile type A (HVA) coking coal price is assessed at around USD 204/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 166/MT FOB USEC, based on 8% ash, 0.95% sulfur and 34% volatile matter.