Coal news and updates

US OTC thermal coal markets shut out on last day before rollover

US over-the-counter thermal coal market participants got an early start on the weekend Friday as no deals were reported for either physical or financial contracts.

It was the 16th time in 2015 neither physical nor financial deals had been reported. In 2014, the OTC markets were shut out only three times.

"Most of the players were out today," said one trader, who reported a bid and offer for the Q4 financial Central Appalachia rail (CSX) contract at $41/st and $42.70/st, respectively. He also reported a physical offer for the CSX November contract at $42.50/st.

"That's pretty much the market today," he said. "There's been no activity."

Friday was the last day for trading in the front-month October and front-quarter Q4 contracts before the rollover Monday into the November and Q1 2016 front contracts.

Heavier trading throughout the week had taken care of much of the total open interest remaining for the October contracts, although more physical trading could take place through the end of the month, the trader said.

Platts assessed the October contract price at $41.50/st, unchanged from Thursday, based on the lack of market activity.

The front-month CSX contract had a final monthly average of $43.51/st. No bids or offers were heard for the CAPP barge and Powder River Basin 8,800 contracts.

The physically-settled, front-month CAPP barge contract last traded September 19 at $42.50/st and the front-month PRB 8,800 contract traded Wednesday at $11.25/st.

Platts assessed the CAPP barge contract price at $42.25/st and assessed the PRB 8,800 contract price at $11.25/st. Both contracts were unchanged from Thursday, due to a lack of market activity.

The CAPP barge had a final monthly average of $42.72/st while the front-month PRB 8,800 contract had a final monthly average of $10.86/st.

source: http://www.platts.com