Russian sized coal prices edge up in Poland

Prices for prompt cargoes of Russian thermal sized coal exported to Poland were up by an average of 1pc this month — for the first time since the start of the year — after reaching their lowest in June, amid interest in restocking ahead of the heating season.

Prices for high-grade coal have either increased or remained flat, while values for lower-grade material declined in July compared with June because of less demand.

The price for Russian DPK-grade washed coal with a calorific value (CV) of NAR 5,500-5,800 kcal/kg was assessed in July in the $78-83/t range on a dap Brest basis, slightly up from the $78-80/t range recorded last month, under Argus assessments.

The price for Russian DO-grade washed coal with a heating value of NAR 5,500-5,800 kcal/kg was also up this month. But values of lower-CV DO-grade fell from last month amid lower demand. There is less interest in bringing cheaper lower-CV because it will lose quality when stockpiled until autumn.

The average price for DPK-grade coal with a heating value of at least NAR 6,000 kcal/kg remained flat from June, but their range expanded.

Some Russian sellers tried to significantly increase their offer prices when the rouble strengthened against the US dollar, but they failed to attract interest in higher values as Poland remains a buyers' market, with plenty of coal still in stock from the winter deliveries.

Large Russian producers such as Suek, Russian Coal, and Stroyservice have notably cut exports to Poland.

Find more news, price information, and market analysis on Russian coal exports in the Argus Russian Coal report.