Coal news and updates

CAPP coal rail contract moves higher for third straight day

The Central Appalachia rail market traded higher Thursday despite lower gas, and the front-month physical price notched its first three-day rally in the US over-the-counter thermal coal market since late March/early April.

While there were no physical deals heard for the front-month CAPP rail CSX contract, a bid was reported at $39.10/st. Platts assessed the front-month (July) price at $39.25, up 75 cents, based on higher broker marks.

The contract was last reported to trade June 12 for $37.75/st, and was assessed at that price, the lowest in eight years. It has been assessed upward for the last three days based on higher broker marks.

The latest move up Thursday came as the financial CSX contract traded several times, starting with a Cal 2017 trade for $49.75/st for 10,000 st/month. Prior to Thursday, the contract last traded June 12 for $50.25/st.

The Q1 2016 contract then traded for $43.50/st, up from its last trade June 12 at $43/st, and the Q4 2015 contract traded twice, both times for $41.50/st. The Q4 2015 contract last traded Wednesday for $41.90/st.

In addition, two spread trades cleared: the Q3 2015 over Q1 2016 contracts for minus $4 for 40,000 st/month and again for 20,000 st/month. It was the first time the spread has traded.

In the CAPP barge market, the contract was not heard to trade, and no bids or offers were reported. Platts assessed the front-month contract at $41.30/st, down 20 cents from Wednesday, based on lower broker marks.

In the Powder River Basin market, the physical front-month contract was not heard to trade Thursday, but a bid was reported at $9.85/st. The physical front-month contract last traded Wednesday for $10.20/st.

Two financial trades cleared, both for the Q4 2015 contract for $10/st each. The contract last traded June 9 for $9.95/st.

Platts assessed the front-month PRB 8,800 contract at $10.20/st, unchanged from Wednesday, based on the lack of market activity.

The front-month PRB price is down 16.7% from the start of the year and down 20.6% from its year-ago level.

source: http://www.platts.com