Atlantic coking coal: Prices fall on lower China cfr

US coking prices continued to fall today, weighed on by falling delivered prices to China, as any spot interest in the market is resting with Chinese buyers amid port restrictions in India and the idling of several blast furnaces across Europe.

The Argus daily fob Hampton Roads assessment for low-volatility coking coal softened by $1/t to $129.50/t today, as did the high-volatility type A price, which fell to $127.50/t. The high-volatility B price edged down by 50¢/t to $120.50/t fob Hampton Roads.

The lockdown in India has disrupted shipments for some US suppliers as port restrictions have been exacerbated by transportation problems and the lack of workers along the entire supply chain, with many having returned to their hometowns. There is concern that India's lockdown may be extended as Covid-19 infections continue to rise. While mills are still allowed continue operating, the supply difficulties still pose a challenge for mills to operate their coke ovens.

Turkish mills that as recently as the start of March were seeking spot cargoes appear to have retreated for the second quarter. Mills including Isdemir, Erdemir, Colak and Habas have since confirmed that they will be reducing steel production.

China remains a source of comfort for Atlantic suppliers, with traders in Europe and some US mills still looking to offer into China. Beijing has removed all transportation curbs in Wuhan, the city hardest hit by coronavirus, following 76 days of lockdown, lending support to steel demand and overall sentiment in China.

While the number of mine closures in the US continues to rise, with Cleveland Cliff taking the decision to idle AK Coal in Somerset county, despite Pennsylvania reversing an earlier decision to shut its mines, there is little concern among buyers about supply. US miners that are key participants in the export market are still supplying coal from inventories that have been building over the last year.

Early signs of recovery are emerging in Europe, with some mills in Italy and Germany starting to lay the ground work for restarts as soon as the second half of April or May. A number of Italian steel service centres (SSCs) have submitted requests to restart operations and at least four plan to restart by the middle of the week. These SSCs have been receiving inquiries from abroad, which they hope will help them stay afloat.

Limited demand and growing tonnage in the Atlantic market have kept Panamax rates under pressure. But there is hope that some pre-Easter holiday fixing might lend support. The Panamax rate for the US east coast to Rotterdam voyages stands at $6.75/t today, down by $1.50/t from a week ago.