On February 13, SteelOrbis reported Australian premium spot pricing for coking coal at $170-175/mt CFR Rotterdam while US premium coking coal was at $170-175/mt FOB East coast or approximately $180-190/mt CFR Rotterdam. The premium for US product was attributed to the reduced shipping times and lower capital requirements.
According to sources close to SteelOrbis, US coking coal prices continue to attract a price premium compared to Australian sources, but are under pressure from buyers who may increase Australian buys in longer term plans.
Australian premium coking coal pricing is presently at $154-155/mt FOB Australia which translates to approximately $164-165/mt CFR Rotterdam while US offers for premium A grade are up $5/mt in the spot market at $175-180/mt FOB US East coast. The US offer prices are being considered too high by some buyers in the European market.
The most recent ex-US high volume premium A grade deal prices were heard at $163-166/mt FOB US East coast while high volume B grade deal prices were heard at $142-145/mt FOB US East coast.
According to sources, the US is facing tight supply and has additional demand prospects in the spot and lower volume markets as buyers from regions such as the Mediterranean have increased inquiries. Additionally, long-term domestic coking coal contracts will be under negotiations in April, which will put pressure on supply and, therefore, domestic and export pricing.