Prices in Poland fell on high stocks

Prices for prompt cargoes of Russian thermal-sized coal exported to Poland fell by almost 3pc from May as a result of high stocks in the country and weaker prices in Europe.

"Russian sellers have aimed to sell seaborne coal fines quickly, but Polish utilities had to buy coal from local mines to support domestic producers," the trader said.

Prices for Russian coal on a dap Brest basis fell by up to $3/t month on month in June depending on the coal grade and its calorific value (CV). Some sellers had to lower their prices to sell older stocks in line with falling quality and facing competition from cheaper, newly arriving Russian material, a market participant said. But some traders are trying to keep prices stable and are reluctant to provide discounts, which they argue would not support new sales amid weak demand.

The price for Russian DPK-grade washed coal with a CV of NAR 5,500-5,800 kcal/kg fell by $1/t month on month in June on a dap Brest basis, according to Argus assessments. One trader was understood to be ready to negotiate a wider discount if a firm bid emerges.

"Polish buyers are currently focused on planning purchases for July, but June sales are low. Demand for large-sized coal should emerge next month, while bookings for coal fines are expected to resume in August-September," a coal trader said.

But one local trader does not expect demand for Russian coal to pick up in July because of large accumulated stocks.

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