Alpha's Russian deal heralds record contract year

摘要

The panamax sale of US coking coal to Russia's Novolipetsk we reported earlier this week Underestimated the size of the business. We understand that four panamax were bought from Alpha (via Duferco) of a high vol blend (9.5 percent ash, 27-29 vol) at 129-130 dollars FOB, a price which US suppliers would equate to 135-140 dollars for a premium blend. Novolipetsk's return to the international market (it bought one vessel of Rio Tinto's Hail Creek a couple of year's back) is just one piece of business which will see buyers in the former East Bloc take 1.2mt from the US this year compared with a couple of vessels into the Ukraine in 2006. "Next year the volumes will double, with the Ukrainians alone telling us they want 1.3mt," said one US producer today.