Coal news and updates

Alpha news boosts US OTC thermal coal volumes, prices

US over-the-counter thermal coal markets were more active Thursday, with prices rebounding across the board and volumes rising on news of a major producer's financial concerns that could lead to a decrease in production.

Even though major Central Appalachian producer Alpha Natural Resources is not a big trader in the OTC markets, Thursday's announced delisting of the company on the New York Stock Exchange and the company's reported efforts to obtain financing for a potential bankruptcy could have had some impact on the OTC markets, a market source said.

"They're probably not going to be in a selling mood," the source said. "That might be a reason for our jump in price today."

Both CAPP contracts had activity, starting with a physical trade for one train (11,000 st) at $44/st for the front-month (August) CAPP rail (CSX) contract.

The August CSX contract last traded physically July 8 after the 2:30 EDT Platts assessment window at $43/st, and had not traded inside the window since trading July 7 at $41.75/st.

The CSX Q4 contract also was active, trading eight times for five contracts/month (120,000 st) and twice for 10 contracts/month (60,000 st) all at the same price of $45.60/st, according to the CME Group.

Platts assessed the front-month CSX contract price at $44/st, up 85 cents from Wednesday, based on that physical trade.

The physically-settled CAPP contract, meanwhile, also showed life Thursday with a reported bid and offer of $42/st and $44/st, respectively, the source said.

The front-month contract has not traded since June 12 at $42/st. Platts assessed the CAPP barge contract price at $43/st, up $1.95 from Wednesday, based on that bid and offer.

The Powder River Basin also rebounded slightly with a reported physical trade for the August contract at $10/st.

The same contract had traded at $9.90/st Wednesday, but had traded at $10.15/st last week.

Platts assessed the front-month contract price at $10/st, up 10 cents from Wednesday, based on that physical trade.

source: The August CSX contract last traded physically July 8 after the 2:30 EDT Platts assessment window at $43/st, and had not traded inside the window since trading July 7 at $41.75/st.

The CSX Q4 contract also was active, trading eight times for five contracts/month (120,000 st) and twice for 10 contracts/month (60,000 st) all at the same price of $45.60/st, according to the CME Group.

Platts assessed the front-month CSX contract price at $44/st, up 85 cents from Wednesday, based on that physical trade.

source: http://www.platts.com