Coal news and updates

Atlantic met coal: US pricing falls to compete with Australia

The Atlantic met coal market saw a further round of price falls Friday as limited spot demand and surplus material stemming from SSI UK's closure kept markets well-supplied as Australian qualities remained priced attractively.

Several US coal brands in the low-vol and high-vol segments were fighting it out in the high-to-mid $70s/mt FOB US East Coast range, according to the latest price indications from the market.

Offers are aided by some lower rail freight and an urgency to move material, while spot demand was soft, according to sources.

Contract flows are keeping loadings at Baltimore and Hampton Roads going, one US source said.

Recent geological disruption at a Central Appalachian low-vol longwall mine is not said to have resulted in additional spot inquiries, with the problems said to coincide with a time of soft overall demand for spot low-vol.

A weak CSR low-vol coal was indicated by a trader as available in the $75-$77.50/mt USEC range.

US miners and traders are increasingly offering off-specification US low-vols and mid-vol blends to get offer prices down.

An Australian mid-vol coal for December shipment was reported trading Thursday at $76.25/mt FOB Australia for 90,000 mt through globalCOAL. A mill buyer said he had little new business to discuss until the new benchmark negotiations spurned another round of purchases for first-quarter loadings.

The Platts US low-vol HCC assessment, based on good quality CAPP low-vol with 58% CSR and 1.5% MMR at 19% VM, was $1.25 lower at $80/mt FOB USEC.

The Platts US high-vol A assessment fell $1 to $80.75/mt FOB USEC.

Platts assessed US high-vol B, based on 34% VM coal with 25,000 ddpm, down 50 cents to $76/mt FOB USEC.

"Industry needs to take serious look at the situation in the US. More miners will disappear by 2016," the US source said. "Shutting more mines is inevitable."

source: http://www.platts.com