Coal news and updates

Large East Coast US met coal shipment to China likely mid-vol

A record-volume metallurgical coal loading bound for China form Norfolk Southern's Pier 6 at the Lamberts Point terminal in Norfolk, Virginia, is likely a mid-vol quality, sources said Wednesday.

Norfolk Southern, in a Wednesday statement, said its employees finished loading 151,356 mt of met coal Tuesday onto the 984-foot M/V China Pioneer, which has departed for Liuzhou Iron and Steel in China.

"That's a record for Pier 6 and for the entire Port of Hampton Roads," NS said.
The coal was shipped by Integrity Coal Sales International in 1,561 railroad coal cars. An Integrity sales official declined to comment further on the quality of the coal.

NS spokesman Robin Chapman, in a phone interview, also wouldn't disclose specifics other than to say the coal was from "the mid-Appalachian region." He did say a smaller ship, the Aragonit, equipped with its own offloader, is taking on 40,000 st of the same coal and will follow the other ship to Trinidad, where it will transfer its load to the China Pioneer.

Chapman said the 50-foot channel in Hampton Roads is not deep enough to take on the full 200,000 st the China Pioneer will carry to its final destination.

Sources with knowledge of Integrity Coal Sales and the met export markets to China had varying ideas of what quality of coal was loaded, but agreed it would most likely end up in a mid-vol blend if it wasn't already blended before shiploading.

"My guess is it would be a mid-vol ... that's usually what the Chinese look for. They hardly ever look for high-vol," one coal export sales executive said in an interview.

Another source said "China is notorious for blending high-vol and low-vol to make a mid-vol. Integrity's MO is a high-vol/low-vol blend to make a mid-vol. On this particular business, I'm not sure ... When I used to do it, we'd take eight different coals on eight different cars" for a blend.

Wednesday, Platts assessed its Hard Coking Coal 64 Mid Vol CFR China at $152/mt, up $1; Low Vol HCC FOB US East Coast at $136.50/mt; High Vol A FOB US East Coast at $129.50/mt; and High Vol B FOB US East Coast at $119/mt, all unchanged.

Source: Platts