Atlantic metallurgical coal markets Wednesday heard of building US producer pressure in export markets due to steady low pricing on overall costs, while fears suggest mills may discriminate on supply reliability woes as Chapter 11 grips the industry.
US cargoes of mid-vol blends and high-vols blends were only reported in spot trade, and sub-$70/mt FOB USEC pricing was heard into Turkey.
This followed a quarterly contract mid-vol blend to India breaking this threshold earlier, but with other US spot and contract-related export trade at a $70-$80/mt FOB range.
Some US miners avoid Turkey, getting higher FOB prices elsewhere, with demand for single seam higher CSR coals or other well-known high-vol brands more stable.
Traders and miners are understood to have agreed a range of coking coals and PCIs into Turkey at CFR prices in the $70s/mt and high $60s/mt for the majority.
In the current low freight market, arbitrage may be slight and quotes for Australian and Canadian coals delivered via the Cape of Good Hope or via the Suez for willing shippers chase buyer expectations in this range.
US mid-vol blend with 0.85% sulfur, 8% ash, around 27.5% VM and 10,000 ddpm guaranteed was heard trading in the mid $70s/mt CFR Turkey.
One source said regular monthly shipments from the US may total some 400,000 mt.
Colombian mid-vol blend typically with less guaranteed fluidity was last heard sold at $73/mt CFR Turkey.
Regional contract demand for Alabama coals and East Coast high-vols may be waning after contract volumes are performed, with a bigger push for Australian and Canadian material. Some mines remain idled, with prospects partly aligned to domestic demand.
Meanwhile April loading cargoes of Australian premium coals were heard getting sold, with references to high $70s/mt FOB or linked to spot prices. March availability was said to be limited.
Some short sales in Australian brands may be getting covered to create some tightness, or the impression of tightness, particularly for premium mid-vol, a buyer source said.
A buyer at a mill was focused on iron ore's rise and China's steel demand influencing the general market appetite, but dismissed the recent support as unsustainable without real estate stimulus from Beijing.
The Platts US low-vol hard coking coal assessment, based on good quality CAPP low-vol with 58% CSR and 1.5% MMR at 19% VM, slipped 25 cents to $74/mt FOB USEC.
The Platts US high-vol A assessment dropped 50 cents to $75/mt FOB USEC.
Platts assessed US high-vol B, based on 34% VM coal with 25,000 ddpm, 50 cents weaker at $70/mt FOB USEC.
