Atlantic metallurgical coal: Steep falls in Australian coal hits US levels

Chemical News: Atlantic metallurgical coal: Steep falls in Australian coal hits US levels

https://www.chemnet.com Mar 27,2017 Platts
Atlantic met coal markets on Thursday faced steep declines in Australian FOB prices, cutting prior indicative trading levels for US coals. This still left US prices holding at higher relative premiums.

One US miner said he was seeing the effect of the coal supply tightness easing a little from Australia and that US material is still being offered at a premium to FOB Australia when considering quality and timing differentials. He said he would offer indicatively at $160/mt FOB USEC for straight mid vol.

A European mill source said "the benchmark is dragging on, but people can do business though some people cannot wait; whatever the reason, there are traders and whether they are procuring on a different basis, they can offer."

Sources said there had been some recent spot business in Russian PCI related to Australian PCI spot deals, helping to cover Q2 requirements, and that the Russians had been interested in selling more PCI recently.

The Platts US low-vol assessment fell $1.50 to $158/mt FOB US East Coast. Platts' high-vol A assessment fell $1/mt to $162/mt, while high-vol B pared $1 to $139/mt FOB USEC.
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