Coal news and updates

European physical coal prices dipped on Tuesday as the warm summer months continued to sap demand.

 

Coal cargoes for delivery in July to the ports of Amsterdam, Rotterdam and Antwerp (ARA) were trading at $70.70 a tonne on Tuesday afternoon, down $0.15 since their last close, and cargoes for delivery in August and September were down 25 and 10 cents respectively to $71.25 and $72.20 per tonne.

 

Traders said the low demand was a result of warm weather and overcapacity.

 

"It looks like we're going to have an unusually warm summer in Europe this year, so that will further sap demand during a season where coal use is already low," said one coal trader.

 

"With coal stocks already full following a mild winter and spring, utilities are barely placing new orders, further pulling down prices," he added.

 

Most of Europe is expected to see above normal temperatures this summer, especially western and northern regions, Weather Services International (WSI) said on Tuesday.

 

In the coal futures market, however, prices rose, with API2 2015 contracts trading at $80.40 a tonne on Tuesday, up from below $79 the previous day.

 

"Just as in February, March and April, there is a lot of support with API2 2015 around $80, and whenever it dips below a lot of market come in and buy, pushing it back above that level," said another coal trader. 

 

 

Source: http://af.reuters.com/