Atlantic met coal markets Monday saw hefty increases in offers after US miners chased the $300/mt FOB mark.
A trader believed there would be greater interest in fixed price deals to lock in deals at above $200/mt FOB, given the margin improvement at the mine from earlier levels. Crossover coals moving into met coal from thermal coal markets is leading to greater interest, with the trend reflecting tight supply of straight high-vol HCC in Central Appalachia, sources said.
The Platts US low-vol assessment increased $25 Monday to $255/mt FOB US East Coast. Platts high-vol A assessment was $25 higher at $265/mt, while high-vol B rose $25 to $205/mt FOB USEC.
The Platts Australian Premium Low Vol net forward assessment was stable at $301.65/mt CFR basis Capesize freight to Rotterdam.
A buyer said he was out of the market for imports until June, while indicating high-vol A pricing would be moving toward $290-$300/mt FOB US East Coast. There may be a premium based on good logistics over some Alabama coals, he added.
After the close, a miner indicated offers for second quarter loading high-vol A and low-vol had moved up in excess of $300/mt FOB USEC.
A second tier met coal supplier saw greater inquiry Monday from last week and was willing to offer coals for blending.
