<article><p class="lead">Chinese demand for US high-volatility A coals drove prices higher today as more Chinese mills look beyond familiar US and Canadian low-volatile brands to cover the growing short fall stemming from restrictions on Australian coal.</p><p>The<i> Argus</i> daily fob Hampton Roads assessment for high-vol A coking coal rose by $7.50/t to $140/t, driven by Chinese interest in the spot market for US high-vol A coals. The low-vol assessment rose by $1/t to $146.50/t, supported by continued strength in Chinese demand and the China cfr crossing the $200/t mark yesterday. The high-vol B assessment remained at $118/t.</p><p>A major US producer sold a 105,000t cargo of high-vol A coking coal with CSR of around 65 to a Chinese buyer at the end of last week for just over $170/t cfr via a US-based trader for loading in late February or early March. "The coal will be freshly mined, as we don't have that level of stock," said the miner. The miner is in discussions to sell a second cargo to China for loading in the second quarter. "We expect this to shift the supply dynamic significantly," said the miner. The same miner received enquiries from two European mills for high-vol A cargoes for first-quarter loading but did not have the availability. China's large domestic supply of high-vol coals means that US high-vols do not normally sell to China, but since Chinese buyers have been unable to import Australian coal, US high-vol A coals have been attractive for their higher CSR. "We do not have any high-vol A available through the first quarter and our understanding is that there is not a lot available from others. We would expect anything that comes up to be offered out at $140/t fob plus," said another US miner. </p><p>A February loading of Blue Creek #7 was heard sold at $201/t cfr China late last week along with two unconfirmed spot sales of Teck Elkview at $195-200/t cfr and $201/t cfr, driving the <i>Argus-</i>assessed low-vol China cfr to $201/5 today. Established brands of higher quality have been securing a premium in China. Another US miner concluded a sale for a lower CSR low-vol cargo to China at $134.50/t early last week. A total of four Capesize vessels of Buchanan low-vol will be shipped to China in the first quarter, with the next availability expected to be for April loading. No US suppliers are focused on China and Europe, refusing to offer against discounted Australian cargoes into Turkey.</p><p>US suppliers offered on a Brazilian tender for 100,000t each of high-vol A and high-vol B last week. Some producers offered at a 10pc discount to indexes, while others offered at 100pc relativity.</p><p>Major producers are largely sold out across all coking coal segments through the first quarter. "We are receiving enquiries from Europe and South America for high-vols and low-vols, but at the moment China is outpricing everyone," said a miner.</p></article>
