Thursday, 12 May 2011
Coal prices are inevitably following the oil markets downwards, while players assess the impact of disruptions to German river deliveries.
According to one broker, the front month contract in the API 2 window last traded down USD 2.75 on the previous session’s close, at USD 125.25 per tonne while the front quarter was down by a more modest USD 0.80 at USD 124.45 per tonne.
One London based coal analyst with a large investment bank said that “Energy traders across the world were staring at a collapsing crude price. Coal was relatively solid in the face of this, with the benchmark Cal 12 API 2 contract dropping just 2%.”
Noting this may indicate that there is less speculative length in the coal market. Meanwhile, the European coal market is focusing its attention on Germany, where water levels on sections of the Rhine a key inland transport route for coal are more than 50% below average, according to German weather service Wetter Online. (sourced from Montel)
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