Atlantic metallurgical coal market mulls new fiscal-year changes
OREANDA-NEWS. Atlantic metallurgical coal markets January 25 heard of possible changes afoot from the start of the new fiscal year, with some variations on coal types and brands -- as well as pricing structures -- being discussed.
The use of annual fixed pricing with some inclusion of quarterly benchmarks for US coals, particularly, may potentially reduce, with flexibility and shorter-term pricing or indexing being considered by some Europeans.
Coke technicians were keeping the trend in check, as some companies had less experience in making faster changes toward lower-priced coke blends in line with coal price moves, despite the industry's urgency to save money.
The health of US miners and concerns around material availability from the East Coast and through the port of Mobile, Alabama, was exacerbating tension.
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A buyer was heard looking to start negotiating some spot US tonnages next month as material committed to April expires.
A trader was looking at possibilities in the US to invest and finance trade, and changes in US coal availability, but said he was not prepared to go deep into pre-financing shipment volumes.
He preferred to support flows of individual cargoes from material already produced for now.
Colombian high-vol blend was heard tradeable into Turkey in the mid to low $70s/mt CFR, with price the deciding factor.
Lower prices for Colombian high-fluidity coals, on a delivered basis, than other origins may yet convince other European buyers that typically prefer to stick to US or Australian high-vols with fluidity, processed from known mines and prep plants to help standardize quality.
The Platts US low-vol HCC assessment, based on good quality CAPP low-vol with 58% CSR and 1.5% MMR at 19% VM, settled at $75.50/mt FOB USEC.
The US high-vol A assessment was stable at $77.50/mt FOB USEC, while Platts assessed US high-vol B, based on 34% VM coal with 25,000 ddpm, stable at $70.50/mt FOB USEC.
US coals remain preferential for domestic business, with any exports limited to topping up on requirements from some buyers. Some well-rated coals from non-longwall mines were heard only making sales in volumes as part shipments, combining with other coals.
In Brazil, the Tubarao port disruption that was affecting Pier Two loadings of iron ore to Valemaxes for export was not said to be affecting discharges at the Praia Mole coal terminal.
However, a market source familiar with the port heard of some delays to coal ship movements in the area as a result.
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