OREANDA-NEWS. Talk of more-competitive US high-vol prices lent a bearish tone October 19 to the Atlantic met coal market, which has limited spot appetite for the remainder of the year.

One miner was pushing the US export price down in the high-vol segment, according to several sources' pricing indications.

Other suppliers and traders were yet unable to match the prices, suggesting there was some reluctance from higher-cost miners, or those with limited tons and greater domestic sales, to match export prices at new lows.

US high-vol B, with over 35% volatile matter, 50 coke strength after reaction, 28,000 fluidity (ddpm), around 7% ash and under 1% sulfur, was said to be traded recently at around $74/mt FOB USEC, with high-vol A just above $80/mt FOB US East Coast.

A trader said he saw little opportunity in the US high-vol sector, with limited US PCI potential too, based on current pricing, costs and margins--as well as the alternatives available from Australia.

"There's no space in US high-vol," said a source at a trading group.

The next six months may help determine new opportunities after US companies restructure mines and operations, and domestic contract volumes and pricing are agreed, he said.

Spot PCI prices are in the $60s/mt FOB, and sources said pressure is expected to remain for Russian suppliers to use this basis for sales in the Atlantic, rather than refer to quarterly contract pricing in the mid $70s/mt CFR ARA (Antwerp/Rotterdam/Amsterdam).

Building positions on Australian coals may be a riskier strategy, although more of a profitable one, despite limited margins making this also difficult.

The Platts US low-vol HCC assessment, based on good quality Central Appalachian low-vol with 58% CSR and 1.5% reflectance (MMR) at 19% VM, was 50 cents lower at $81.50/mt FOB USEC.

The Platts US high-vol A assessment fell $1.25/mt to $82/mt FOB USEC.

Platts assessed US high-vol B down $2 to $76.50/mt FOB USEC, based on 34% VM coal with 25,000 ddpm.

US costs may not support prices below the low $80s/mt longer term, said a trader looking to market US coals into Europe.

Multiple smaller met coal sources were unable to provide pricing allowing for lower FOB values--while rail and port fees, along with mine costs, may help differentiate producers' willingness to follow Australian prices down.

In the coke market, Colombian material with 65% CSR was indicated on offer at $135/mt FOB, with Chinese offers for similar grades around $10/mt lower, albeit for qualities that may be inferior at discharge, said a trader offering both.