US Coking Coal: Prices hold steady amid renewed interest in China
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US coking coal prices remained steady, as US supply cuts pushed up tradable values and with the return of Chinese buyers following their week-long National Day holidays.
Several high-vol A mines in the US were idled last week, tightening market for US high volatile grade coking coal.
Further, the closure at Blackhawk's Washington mine and associated mines may possibly drive high-vol B higher, according to market sources.
Meanwhile, buyers indicated no immediate demand, alongside limited inquiries for spot sales.
Weaker steel output and iron ore rates have hit all major coking coal-consuming nations across Europe, Brazil, the US and Japan.
Seaborne traded coking coals - outside the premium low-volatile segment most favored by Chinese importers - may come under renewed pressure, as European and South American demand contracts.
PRICE ASSESSMENTS
The latest FOB US East Coast price of low-volatile hard coking coal is assessed at USD 126.00/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 186.00/MT on CNF India basis, after considering a USEC-India dry bulk freight rate of USD 30.00/MT for delivery by Panamax vessel class.
The US high-volatile type A (HVA) coking coal price is assessed at around USD 132.00/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 se 124.00/MT FOB USEC, based on 8% ash, 0.95% sulfur and 34% volatile matter.