Coal news and updates

US over-the-counter thermal coal prices were mostly unchanged on Tuesday, with only two trades in the session.

 

CSX financial Q3 2014 over Q4 2014 traded at minus $1/st for 10,000 st/month. Q3 2014 physical was assessed 60 cents/st higher to $63.25/st, and Q4 2014 physical closed unchanged at $64.25/st.

 

In the options market, CAPP barge Q4 2014 call option with a strike price of $68/st traded at a premium of $1.35/st for 20 barges/month. The Q4 2014 price was assessed unchanged at $65/st.

 

Looking past Tuesday's quiet trading day, coal market participants will be attending the 43rd Annual Eastern Fuel Buyers conference in Orlando, Florida, from May 7-9.

 

CIF ARA SPOT MARKET EDGES LOWER

 

Atlantic thermal coal trading resumed at breakneck speed Tuesday following a UK holiday the previous day, with 450,000 mt of prompt European-delivered coal changing hands in a lively session.

 

However, despite the high traded volumes and an accompanying rally in the financial coal derivatives market, there was little movement in physical prices, with sources saying that an increasingly bearish supply outlook was suppressing spot pricing.

 

The CIF ARA-FOB CSX spread, or implied transportation spread, narrowed to $13.29/mt from $13.39/mt on Monday.

 

US East Coast thermal coal (6,500 kcal/kg NAR 1% sulfur) was assessed unchanged at $78.75/mt.

 

Source: Platts