The Atlantic metallurgical coal market on Friday saw US low-vol prices narrow their discount to high-vol A grades, as low-vol and mid-vol Australian coal won support on higher Chinese spot demand.
S&P Global Platts assessed US low-vol $2 higher at $143/mt FOB US East Coast Friday as the mid-window laycan moved more toward August.
Alabama-based premium coals saw better support as FOB Australia values rose, as such material is more directly comparable to top-tier Queensland output than some Central Appalachian low-vol alternatives.
Platts' high-vol A assessment rose 50 cents to $147.50/mt FOB USEC. The high-vol B assessment, based on 34% VM coal, rose $1 to $130/mt FOB USEC.
A lack of deal information and spot demand signals from buyers, outside of some tenders and longer term Asian interest, meant high-vol markets were less responsive to the Asia Pacific market-led HCC price rebound last week.
A buyer in Europe said imported US coals were continuing to be attractive based on both spot availability and prices.
He said he expected no spot demand for imports for some time, as a vessel was already arriving with more material.
This view was in contrast to that of other suppliers following a recently more complicated benchmark pricing structure, as uncertainty around the future of the benchmark is leading to further pricing discussions for some contract customers.
A trader said he believed the Chinese market was lending support, and coke prices for now remained less attractive at FOB offer levels.
He added that he was unsure how long the support would last and whether Chinese mines would tighten production levels of met coal in the longer term.
Platts Australian Premium low-vol net forward assessment fell 10 cents to $154.10/mt CFR Rotterdam.
