Tuesday, 15 Mar 2011
International steam coal prices have been quick to firm on expectations that earthquake hit Japan will need more imported thermal coal for power generation to replace nuclear plants shut down as a safety precaution.
Coal traders say Newcastle swaps prices firmed as early as last Friday despite the fact that it is impossible yet to predict how much extra power coal Japan might need and because physical supplies were already under strain pre quake.
One reported market assessment from Friday put a price of USD 128.25 per tonne on Q2 swaps, marking an overnight USD 2.35 per tonne improvement and Newc Cal-12 at USD 124 per tonne up by USD 1.25 per tonne.
Reports quoting London banking sources claimed the Japanese disaster had “propped up” what had been a bearish short-term coal market, although medium-term outlook had been bullish.
Other reports said that on news of the earthquake and Japanese infrastructure damage, the 2Q API2 swap price climbed by USD 1.75 pert tonne to USD 122.25 pert tonne. Japanese sources have told coalportal.com the country will be forced to bring back online mothballed coal-fired power stations as soon as they possibly can to meet power demand but this process is expected to take some months. The Japanese government has implemented a series of rolling blackouts across the country to conserve power. This has seen the business centre of Tokyo all but shut down and public transport working only intermittently.(sourced:coalportal)
Coal traders say Newcastle swaps prices firmed as early as last Friday despite the fact that it is impossible yet to predict how much extra power coal Japan might need and because physical supplies were already under strain pre quake.
One reported market assessment from Friday put a price of USD 128.25 per tonne on Q2 swaps, marking an overnight USD 2.35 per tonne improvement and Newc Cal-12 at USD 124 per tonne up by USD 1.25 per tonne.
Reports quoting London banking sources claimed the Japanese disaster had “propped up” what had been a bearish short-term coal market, although medium-term outlook had been bullish.
Other reports said that on news of the earthquake and Japanese infrastructure damage, the 2Q API2 swap price climbed by USD 1.75 pert tonne to USD 122.25 pert tonne. Japanese sources have told coalportal.com the country will be forced to bring back online mothballed coal-fired power stations as soon as they possibly can to meet power demand but this process is expected to take some months. The Japanese government has implemented a series of rolling blackouts across the country to conserve power. This has seen the business centre of Tokyo all but shut down and public transport working only intermittently.(sourced:coalportal)
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