Coal market not yet hit by low German river levels

Thursday, 18 Aug 2011

A German utility source told Montel that German river levels are still at significantly low levels although, with utility demand muted in the summer period, there is currently no marked impact on coal supply to plants.

German weather service said that river levels across Germany are generally between 5 to 50% below average, although levels on the river Elbe at Torgau are more than 50% below average, with a depth on Tuesday of around 150cm.

The utility coal and freight analyst said that “At the moment, it seems that everything is okay, as utilities are carrying out maintenance at this time of year, so demand is not so strong.”

According to official government forecasts, water levels at Kaub, on the river Rhine below Koblenz, may drop to below 190cm in the week to August 20, after initially rising to more than 200cm in the coming week.

Kaub levels which were last seen at 194cm are an important indicator, as it is one of the widest and shallowest sections of the Rhine. When water levels fall below 200cm, utilities or coal suppliers are liable to pay barge operators a low water premium and levels on some river sections are currently at around 180cm.

(sourced Montel)