Russian coal prices in Asia-Pacific increased this week as demand from China, Taiwan and South Korea remained strong.
And limited availability of spot cargoes for May-June loading should continue to support prices through to the end of April and into early May, according to market participants.
Russian NAR 6,000 kcal/kg prices for buyers in Asia-Pacific were up by $3.40/t on the week to $93.10/t fob. Some sellers lifted offers to above $95/t fob for Panamax cargoes and around $90-92.50/t fob for Handysize cargoes.
A large Russian mining firm sold a Panamax coal cargo to Taiwanese conglomerate Formosa Plastics (FPG) at a premium of $14/t to the fob Newcastle index on a delivered basis for July delivery. Market participants estimate this price is equivalent to around $105/t cfr. Another Russian coal exporter offered at slightly below $107/t cfr in the same tender. The buyer is unlikely to have made additional purchases owing to high prices. Elsewhere, a Chinese buyer purchased a 35,000t high-CV cargo for May loading at $86/t fob Russian far eastern port. The price was relatively lower owing to the higher freight rates for smaller vessels. Freight for Handysize vessels from Russia's Vostochny port was around $14-15/t, from Vera port it was around $16-18/t, and from Vanino up to $20/t fob, market participants said.
But Russian producers lost out to Australian suppliers in several recent tenders issued by South Korean utilities.
Russian NAR 5,500 kcal/kg prices rose by $5.71/t on the week to $86.50/t fob, pulled up by trade activity and higher offers. Buyers in China said they received fresh offers at $85/t fob and above, while some Russian mining firms lifted offers to $88-90/t fob, and confirming trades at this level. Several trades were also done to south China at $97/t cfr this week.
European demand remains muted
The price of Russian coal shipped from northwestern ports increased by $1.12/t from the previous week to $65.92/t fob Baltic ports, on slightly firmer European-delivered prices. Sellers increased offers to $65-66.50/t fob for May-June loading, market participants said. No assessment-relevant trades were reported.
One large Russian coal exporter offered a cargo to western Europe at around $65.90/t fob this week. Another trader received a bid from a European buyer at $62.50/t fob, which was below the level he could confirm.
The price of Russian high-CV coal shipped from Black Sea ports rose by $2.70/t on the week to $72.50/t fob. A Russian exporter offered NAR 6,000 kcal/kg coal at $72/t fob from a Black Sea port, while offers from Taman were around $75/t fob.
