GLOBAL Atlantic coking coal: Prices flat on supply limitations
half closed last week but results are not expected for a few weeks at least, participating mining and trading firms said.
US coking coal prices have held steady at the end of this week, supported by mining firms with limited inventories focusing on term sales and turning away buyers seeking discounts.
Colombian coking coal availability is rising again, with mining outfits starting to resume operations but none are willing to accept prices of below $100/t fob Colombia, a trading company said. Met coke offers from Colombia have risen to about $230/t fob Colombia on the back of improved demand from China, Brazil and Mexico, from $210-215/t fob at the start of the Covid-19 pandemic in Europe.
The production cuts in the second quarter and mills looking to bring forward and even increase term deliveries have meant that few mining companies appear have ready spot availability for August and September. The Argus daily low-volatile price is flat today at $104/t fob Hampton Roads, as are the high-volatile A price, at $109.50/t fob Hampton Roads, and high-volatile B price, at $103.75/t fob Hampton Roads. Brazilian tenders for deliveries in the second
22 | CCAI Monthly Newsletter July 2020
"Most US producers would not be making money at current levels unless they are in the lowest-cost quartile. We see some producers further curtailing production this year," one US mining company said. "We have turned away a mill seeking a discount as we are largely booked out for this quarter, with possibly capacity to offer low-volatile."
