<article><p class="lead">Acute tightness in the US market and high Chinese domestic prices have driven the premium that US low-volatile coal commands over fob Australia premium low-vol to $98.65/t today, the widest in <i>Argus' </i>assessment history. The premium is far more significant when considering the premium US low-vol segment alone, where coals such as Blue Creek 7 and Oak Grove can command a premium of over $140/t to premium low-vol Australian coals. </p><p>The <i>Argus</i> daily assessed US low-vol coking coal price is unchanged at $488.40/t fob Hampton Roads today, with the market muted on the first day of the Golden Week holiday in China. The high-volatile A and high-volatile B assessments increased by $2.50/t to $385/t fob Hampton Roads and $290/t fob Hampton Roads respectively, largely on the back of notional market indications as trade remains thin with limited availability. </p><p>A US supplier is heard to still be offering an October-loading Panamax of Blue Creek 7 in a package deal with a Capesize cargo of Buchanan for $625/t cfr China and $580/t cfr China, respectively. But Chinese buyers are not expected to be active until after the holiday. The last done deal in the segment was for a Panamax of November-loading Oak Grove at $601.77/t cfr China, which traded earlier this week. </p><p>"There are no full vessels of well-established high-vols, especially high-vol B, available for loading until December or January, although the odd spot train might pop up," a trader said. Some US miners are very keen for high-vol B indices to close the almost $100/t gap to high-vol A, the same trader said. But tight availability has limited the number of fixed-price spot trades in recent weeks. Some market participants question the real desire for most high-vol coals in China, apart from one or two widely recognised brands. "They have only been buying because they're out of options, or because people have been offering high-vols in package deals with low-vols," another market participant said.</p><p>Several European and South American buyers have commenced discussions with US miners for next year's term contract supplies, but their approaches have varied. "We have buyers that have come to the table and are progressing in their discussions, but there are others who are less prepared and are seeking rollovers of last year's prices or to secure volumes for only six months ahead," one miner said. The miner added that no requests for rollover prices will be considered in the current price climate and reduced requirements will not be offered any guarantees of supply availability later in the year.</p></article>
