US met coal prices resumed falling Thursday, with a sustained lack of trade and bidding unable to halt broader global market acceptance of lower tradable values.
With Australian premium coals assessed below $180/mt FOB, any indicative bids may be circling around levels closer to the mid $150s last seen in March.
European buyers may be preparing for further purchasing, against earlier procurement indications. But in a falling market, negotiations may be slow to conclude.
Japan and China may have less immediate spot appetite, giving parties the impression of being able to remain out of the market until end-June, said one supplier.
"Japan, China and India are well stocked, but Europeans are quite short," he said.
"Japanese mills are cautious prices should not fall too low, as they do not want to repeat another price spike," he said. "They are thinking long-term, they want a stable price."
S&P Global Platts assessed US low-vol for prompt spot sales down $10 at $175/mt FOB US East Coast.
The Platts high-vol A price fell $10 to $190/mt FOB USEC, while the high-vol B assessment was $7 lower at $158/mt FOB USEC. The Platts Australian Premium low-vol net forward assessment was stable at $188.35/mt CFR Rotterdam basis.
A trader expected US and Russian FOB HCC prices to remain well above $150/mt FOB for high-vols at the moment, and offers reluctant to fall too sharply.
On the SGX at the Asian close Thursday, daily settlement prices fell $2/mt to $156/mt FOB for Premium HCC futures over Q3.
Trade totaling 255,000 mt was seen over Q4 and Q1. Daily settlement prices were at $154/mt in Q4 and $150/mt for Q1 2018.
The Platts TSI Premium Hard Coking Coal reference price used for settlement fell 9.5% to $175/mt FOB Thursday.
