Coal news and updates

ATLANTIC MET COAL: Russian PCI tight, US high-vol

Atlantic coking coal markets Wednesday heard of tightness in Russian PCI, and some interest in US high-vol blends rather than brand products to cut costs.

PCI supply from Russia to Europe was indicated as limited over winter with January and February already sold out at several miner/traders.

A Panamax cargo traded on a FOB Baltic basis for a mid-vol product with around 8.5% ash, and similar material for March loadings were said available at around $93/mt FOB. Freight is indicated around $7/mt to Northwest Europe. The cargo was destined for a mill in Northwest Europe.

Stocks were indicated as being low and there were longer lead times from Australia and limited replacement grades elsewhere.

Another Russian miner with a lower VM PCI with low ash had earlier this week said it was sold out until April.

A buyer saw offers for blended US high-vol close to high-vol A specification at $110/mt FOB USEC, and another which was described as being better than a high-vol B at $108/mt FOB USEC from a trader.

Material was indicated available for February laycans. Some brands had tight supply and were priced too high for some spot buyers. A high CSR, high sulfur high-vol A brand pricing at $114/mt FOB USEC was said to be accurate, but sold out for now, and with limited interest for one buyer at such a price.

In the low-vol and mid-vol segments, some further spot purchasing for the end of next quarter was kicking off in the new year.

Negotiating directly with producers, there were expectations of seeking offers for Australian coals and diversify the mix. A buyer heard of no recent offers for Alabama premium coals.

In Asia, a miner reported a premium mid-vol blend traded Tuesday at $109.50/mt FOB for 36,000 mt February laycan, up from the last $109/mt trade for 50,000 mt of the same brand on December 12.

Both trades' destinations were undeclared.

The Platts US low-vol hard coking coal assessment, based on good quality CAPP low-vol specified on 58% CSR and 1.5% MMR at 19% VM, was unchanged at $110.25/mt FOB US East Coast.

The Platts US high-vol A assessment stuck at $111.25/mt, and Platts assessed US high-vol B based on 34% VM coal with 25,000 ddpm remained at $105.50/mt FOB USEC.

Source: Platts