The Northern Appalachia 13,000 Btu/lb coal market is continuing to see support for export tons and is starting to heat up with US utilities set to award term contracts, sources said Monday.
A producer told S&P Global on Monday that few domestic term or spot deals have been made since springtime but there are "a lot or irons in the fire" with RFPs still open for tonnage through 2018.
The miner said it is close to signing a deal with an industrial buyer for 13,000 Btu/lb, 4.5 lb SO2/MMBtu coal in the mid- to high $40s/st range for delivery starting late this year.
S&P Global Market Intelligence on Monday reported CNX Coal has secured a contract for 5 million st/year to a major utility through 2021. While pricing was not reported, a source said the deal will supply a pair of power plants and represent about one-fifth of annual production from the Bailey mine complex.
Platts on Monday assessed Pittsburgh Seam-quality coal (13,000 Btu/lb, 4 lb SO2/MMBtu) at $47/st FOB rail for Q4 2017 delivery, up $3 from last week.
Export NAPP interest has remained, one producer noted, which has helped to add some demand and support pricing despite a quieter-than-expected domestic market at the start of summer.
"Back in the early spring we heard great things about an above-average summer, but one by one all of my customers have had their forecast changed and downgraded to take less coal," the producer said.
"Export deals have been more than just an opportunity to unload tons; they are deals you can still make money on. In the past, that's not what you've seen, and it's been a help this year."
The producer added that seaborne demand has been stronger than anticipated since the start of May. Europe is still the hot spot for NAPP deals, but shipments have also been made to Turkey and India.
The domestic NAPP barge market has slowed, a source noted, following limited spot activity in June. The source added some producers are limiting tonnage on the water and are looking to rework deals with utilities as pricing has remained below cost for many miners.
Platts assessed Upper Ohio River-quality coal (12,500 Btu/lb, 6+ lbs SO2/MMBtu) at $37/st FOB barge for Q4 2017 delivery, unchanged from last week.
