Coal news and updates

US OTC thermal coal market sees physical PRB 8,800, CSX contracts trade; CSX rises

The front-month Central Appalachia rail (CSX) physical contract rose Monday in the US over-the-counter thermal coal market, with a trade reported at $36/st.

The deal, for one train (11,000 st), was the first physical front-month trade since October 6, when it traded three times at $35.50/st, a multi-year low for the contract. On October 7, the physical front-month contract was assessed at $35.40/st, an eight-year low.

"Seems like maybe it hit that floor and is bouncing a bit," said one market participant.

The CSX futures contract did not trade in the financial market Monday. Platts assessed the front-month (November) physical CSX contract at $36.25/st, up 70 cents from Friday, based on broker marks and a reported bid of $36/st and offer of $36.50/st after the trade.

Still, the front-month CAPP rail contract is down 27.4% year-to-date and 32% from a year ago as the market struggles to compete with low gas prices.

No deals were heard or reported in the CAPP barge market Monday. Platts assessed the front-month (November) CAPP barge contract at $42.20/st, up 5 cents from Friday, based on broker marks.

In the Powder River Basin 8,800 Btu/lb market, the physical November contract traded twice Monday, both times for $11.15/st for one train (15,000 st) each. The contract last traded October 8 for $11.05/st.

The PRB 8,800 financial contract did not trade Monday.

Platts assessed the front-month (November) PRB 8,800 physical contract at $11.15/st, up five cents from Friday, based on the day's trades.

For the year, the front-month contract is down 9%, but up 3.2% compared with the price a year ago.

source:http://www.platts.com