Coal news and updates

No deals in US petcoke markets as buyers chase offers

European buyers were heard chasing US Gulf Coast midsulfur petcoke cargoes in the mid-$40s this week, but no completed deals were heard, sources said Wednesday.

The last reported deal for 5% sulfur petcoke at $49/mt, confirmed last week, fell out of the range of offers reported Wednesday by one European buyer as $43/mt-$48/mt. Sellers were still reluctant to finalize deals in that range, the buyer said.

"Some suppliers have length, some don't, but the offers are more or less bullish," he said.

Sources agreed that midsulfur petcoke could be the next shoe to drop in price as a $15-$20 spread has emerged between mid- and high sulfur petcoke. Buyers would like to see that spread narrow, the source said.

Venezuelan exports could be the impetus for more price drops. If the country can move more cargoes, midsulfur petcoke will be under more pressure, he said.

Platts assessed 4%-5% sulfur petcoke out of the USGC at $44-$49, down $3 on the lower leg and $2 on the upper leg, and assessed Venezuelan petcoke at $45/mt-$49/mt, down $2 on each leg.

The high sulfur petcoke markets also were heard trading at lower levels this week, but appeared to be stabilizing as prices have settled at six-year lows.

Deals were heard concluding at prices lower than the last confirmed deal at $28.50/mt, the European buyer said.

Indian buyers, who traders thought would be more aggressive coming out of the monsoon season, were "taking a breather," one US trader said.

"They were buying cargoes, but then again with the falling prices, they are becoming wary," the trader said.

The trader acknowledged that prices "may be settling down -- at least for now," he said.

Platts assessed greater than 6% sulfur petcoke at $25/mt-$30/mt, down $3 on the lower leg and $2 on the upper leg, and assessed 5%-6% sulfur petcoke at $33/mt-$35/mt, down $2 on each leg from the most recent assessment.

In the US West Coast markets, no deals were heard concluding this week.

Platts assessed greater than 2.5% sulfur petcoke at $54/mt-$62/mt, and assessed less than 2.5% sulfur petcoke at $66/mt-$72/mt. Both assessments were unchanged from the most recent assessment.

source: http://www.platts.com