Steam Coal prices at RBCT dip on Greek decision

Wednesday, 02 Nov 2011

Reuters reported that European prompt physical coal prices fell by around USD 2.00 percent on Tuesday after the Greek decision to call a referendum over its debt bailout revived concerns about the euro zone, pummeling equities, the euro, copper and oil prices.

TRADES

A November loading South African cargo traded at USD 104.75 a tonne FOB Richards Bay, down USD 1.25 from Monday.

Another November South African cargo traded at USD 107.00 for the latter half of the month.

PRICES

A South Africa November Panamax cargo was bid at USD 105.00 and offered at USD 105.00 but could not trade, down USD 1.00.

A December South African cargo was bid at USD 106.50 and offered at USD 108.50, down over USD 2.50 on the bid.

A December DES ARA South African Capesize cargo was bid at USD 117.50 and offered at USD 118.50, down nearly USD 2.00 on the bid.

A November DES ARA Russian cargo was offered at USD 120, having been offered at USD 123.00 and USD 122.00 in the past few days.

Coal as a dollar denominated commodity is sensitive to currency moves. The euro fell against the dollar for a third straight day on Tuesday, as investors rushed to put their money into safer assets.

The fallout from the collapse of broker MF Global Holdings Ltd had little impact on the coal market because MF Global's problems had been flagged a week or more ago and companies with exposure had time to get rid of i.

However, the failure of a large broker, the highest profile victim of the euro debt crisis, is making the coal market, particularly in swaps, even more risk averse than it has been for most of this year.

(Sourced from Reuters)