At a time when Australian premium hard coking coal is trading at $175-178/mt FOB Australia, the same Australian premium low-volatile hard coking coal is reportedly trading at $190-194/mt CFR Rotterdam. Unlike previous times when US coking coal was exporting at a premium into Rotterdam, at the moment sources inform SteelOrbis that “it is trading at the same price to a slight discount to the Australian CFR price level.”
US export coking coal prices are currently under pressure from decreased spot interest, which sources attribute to an expected downtrend in Australian offers resulting from lower volume demands from China. As such, some US mines are reportedly adjusting production volumes downward.
Ex-US premium hard coking coal, or also referred to as low-volatile grade A met coal, is currently trading at $162-165/mt FOB US East coast (USEC) Virginia port, while ex-US high-volatile with low ash and sulfur is reportedly at $146-149/mt FOB USEC Virginia port. US high-volatile grade B coking coal is reportedly at $125-130/mt FOB USEC Virginia port. A source added, “Market is a little uncertain at the moment. Recent prices may be buoyed or enhanced by year-end despite decreased Chinese demand if La Nina weather warning becomes a reality in Australia.”