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US coal still in demand overseas because of high seaborne prices

Coal News - Published on Mon, 18 Jun 2018

Image Source: reutersmedia.net
Platts reported that in the US export market this week, a CFR deal for Northern Appalachia coal, basis 6,900 kcal/kg, for August loading was heard at a price greater than USD 110 per ton.

NAPP coal continues to price into India as a result of relatively high coal prices, as well as ongoing uncertainty around the country's proposed ban on certain petcoke consumption.

S&P Global Platts 14 June assessed CFR India West 5,500 kcal/kg coal NAR at USD 102.60 per tonne, or USD 0.0187/kcal, while a delivered NAPP cargo at USD 110 per tonne, basis 6,900 kcal/kg NAR, would price at USD 0.016/kcal.

Moroccan buyer Jorf Lasfar was expected to buy three 60,000 mt cargoes of 1.5% sulfur max Central Appalachia coal for July and August delivery. The utility typically buys CAPP coal on a fixed price for spot coal, but pricing for US coal was "difficult to read," given it was pricing in much cheaper than Russian coal, a second European trader said.

The trader said that "There is good demand from India as a substitution for petcoke with 3% {sulfur] coal."

Illinois Basin continues to move to destinations outside of Europe, to North Africa, India and South America, a European trader said.

The trader said he thought overall pricing based off FOB Newcastle prices was "fairly unsustainable," and said, "sooner or later, we will see the market coming off."

Platts assessed Thursday FOB Newcastle 6,300 kcal/kg GAR at USD 120 per ton, while FOB Newcastle 5,500 kcal/kg NAR 23% ash at USD 79 per tonne.

In the US, exports continue to dominate market chatter, as domestic coal burn remains anemic because of relatively low natural gas prices.

US thermal coal exports this year total 15.9 million mt through April, and would total 47.7 million mt on an annualized basis, which would the highest since 2012.

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Posted By : Amom Remju on Mon, 18 Jun 2018
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