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US & Canadian Coking Coal Exporters Eying SE Asia

Coal News - Published on Thu, 11 Jul 2019

Image Source: Moneycontrol
Argus reported that US and Canadian coking coal exporters are eyeing emerging growth markets in southeast Asia with increasing interest, with some in early-stage discussions with buyers in Vietnam and Malaysia. Data from the US Census Bureau does not show any coking coal going towards Vietnam or Malaysia historically. Canadian trade data show 497,408t of coking coal heading to Vietnam in January-May down from 590,748 t a year earlier and none going to Malaysia. But some US and Canadian coking coal producers are now looking at these markets more closely, drawn in by ambitious steel production growth projections and also seeking opportunities to diversify sales while several traditional export and domestic markets come under pressure.

One Canadian coking coal producer said that "We are in talks, it's an area under development," adding that no sales to Vietnam or Malaysia have been made yet. Some US producers are also exploring these areas, keen to establish a foothold in new growth markets even if it means selling at a discount.

A similar approach is being adopted by some exporters for US sales into India, which have surged in the past three years. One US producer said it plans to double the share of its sales to India in the near-term to 20pc, adding that it is willing to subsidise freight costs and sell at a discount in order to establish a strong presence in a market that is expected to grow significantly in the next decade.

India assessment for Australian origin premium hard low-volatile coking coal is at USD 202.30 per tonne, while the mid-volatile CFR India index is at USD 185.90 per tonne. Comparing Argus prices on an fob basis, Australian premium hard low-volatile coking coal is at USD 188.80 per tonne, while US low-vols were assessed today at USD 171 per tonne fob Hampton Roads. The daily high-volatile type A (HVA) index is at USD 185 per tonne fob Hampton Roads while the high-volatile type B (HVB) index is at USD 150 per tonne fob.

Argus
https://www.argusmedia.com/en/news/1936393-us-canadian-coking-coal-exporters-eye-se-asia?backToResults=true

Source :

Posted By : Ratan Singh on Thu, 11 Jul 2019
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