On April 11, SteelOrbis reported soaring premium hard coking coal at $300-305/mt FOB US East Coast (USEC) and $240-255/mt FOB USEC for B grade coking coal. Over the following week offer prices firmed up, with CFR offer levels heard in the market on April 17 translating to approximately $270-275/mt FOB USEC for US B grade and $300-310/mt FOB USEC for US A grade. The increase was attributed to the “frenzy” in the coking coal market due to the production and logistics challenges in Australia after Cyclone Debbie.
For the last few days, US coking coal prices have decreased as Australian suppliers are advancing toward normal production and reliable delivery schedules that, according to sources, will still limit market supply late into the second quarter.
US premium hard coking coal prices are presently at $245-255/mt FOB USEC while US grade B grade coking coal is presently at $190-195/mt FOB USEC. From the highest numbers heard in the market from late last week to the early part of the week ended April 21, the price erosion of US A grade coking coal is $55/mt and $80/mt on US B grade.
According to sources, prices are expected to continue at generally present levels through the second and possibly early third quarter, though depending on market conditions, one source noted that prices may trend closer to pre-cyclone levels, which were approximately $190-200/mt FOB USEC for US A grade in early April, once supply stability is achieved.