Friday, 09 Mar 2012
Reuters reported that prompt physical coal prices rose slightly by 20 to 75 US cents a tonne on Wednesday with stronger oil and the euro's gains but activity was muted and no fresh physical trades were reported.
Portugal's EDP is tendering for several cargoes of US or Colombian coal for 2012 delivery and is expected to award by early next week but otherwise end-user buying has been quiet and below the radar, suppliers said.
Utility traders continue to quietly shed unwanted cargoes still arriving into Europe and there is limited buying of prompt material to store until Q4 to take advantage of the current contango.
There might be more stockpile space available at terminals in ARA during the spring months for leasing by traders and banks which are not usual terminal customers but this would depend on what the utilities themselves need.
Source - Reuters
Showing posts with label DES ARA price. Show all posts
Showing posts with label DES ARA price. Show all posts
Friday, March 9, 2012
Wednesday, February 29, 2012
Euro coal prices move up slightly with strong oil - Report
Wednesday, 29 Feb 2012
Reuters reported that prompt physical coal prices rose by around 50 cents in line with oil's gains but aside from a few Calendar 2013 trades, activity was muted.
Oil hit USD 123 a barrel, a 9 month high, as Iran related tensions and supply risks overshadowed weak economic data from Europe and China.
One European trader said that "There's still far too much coal, in Europe especially and this rise in prices can't be justified by fundamentals, which are weak."
Another trader said that "I was cautiously optimistic at the start of the year that prices would steady and start recovering in a few months but everybody is offering US coal into everywhere possible."
China's import statistics for January 2012 showed a fall of 8% from December 2011 level.
On an annual basis, China's coal imports rose nearly 4% and hit a record 22.14 million tonnes in November 2011. South African imports alone in Q4 were also at record levels for each month.
But since the government imposed a price ceiling of USD 130 a tonne on coal prices, domestic prices dropped sharply and fresh import buying started to tail off.
US and Colombian coal has continued to be shipped in large quantity to ARA although utilities and traders are trying to re sell into Asia as far as possible because European stockpiles are close to full. Colombian coal is being sold into tenders in South Korea, US coal is being offered to China, India and southern Europe.
An April 2012 South African cargo was bid and offered at USD 106.00 but the counterparties cannot trade with each other. An April 2012 DES cargo was bid at USD 97.50 and offered at USD 100.50, up around 50 cents.
A May 2012 DES ARA multi origin cargo was bid at USD 98.25 and offered at USD 103.00, also up around 50 cents.
(Sourced from www.reuters.com)
Reuters reported that prompt physical coal prices rose by around 50 cents in line with oil's gains but aside from a few Calendar 2013 trades, activity was muted.
Oil hit USD 123 a barrel, a 9 month high, as Iran related tensions and supply risks overshadowed weak economic data from Europe and China.
One European trader said that "There's still far too much coal, in Europe especially and this rise in prices can't be justified by fundamentals, which are weak."
Another trader said that "I was cautiously optimistic at the start of the year that prices would steady and start recovering in a few months but everybody is offering US coal into everywhere possible."
China's import statistics for January 2012 showed a fall of 8% from December 2011 level.
On an annual basis, China's coal imports rose nearly 4% and hit a record 22.14 million tonnes in November 2011. South African imports alone in Q4 were also at record levels for each month.
But since the government imposed a price ceiling of USD 130 a tonne on coal prices, domestic prices dropped sharply and fresh import buying started to tail off.
US and Colombian coal has continued to be shipped in large quantity to ARA although utilities and traders are trying to re sell into Asia as far as possible because European stockpiles are close to full. Colombian coal is being sold into tenders in South Korea, US coal is being offered to China, India and southern Europe.
An April 2012 South African cargo was bid and offered at USD 106.00 but the counterparties cannot trade with each other. An April 2012 DES cargo was bid at USD 97.50 and offered at USD 100.50, up around 50 cents.
A May 2012 DES ARA multi origin cargo was bid at USD 98.25 and offered at USD 103.00, also up around 50 cents.
(Sourced from www.reuters.com)
Tuesday, February 28, 2012
Steam coal prices dip by 50 with weaker oil prices
Tuesday, 28 Feb 2012
Reuters reported that prompt physical coal prices fell a marginal 50 US cents a tonne on Monday in line with weaker oil.
TRADES
An April South African cargo traded at USD 105.25, down 75 cents.
A March DES ARA Russian Panamax traded at USD 98.85, little changed
PRICES
An April South African cargo was bid at USD 105.25 and offered at USD 107.00, little changed
A March DES ARA cargo was bid at USD 95 and offered at USD 99, down around 50 cents
An April DES cargo was bid at USD 98.50 and offered at USD 100, down around 75 cents
Expectations of improved economic growth and consequent demand for power are reflected in the stronger forward prices.
Brent crude prices pulled back on Monday after a recent jump as concerns about the effect of higher oil prices on global growth and a stronger dollar helped counter ongoing fears about tensions with Iran.
(Reporting by Jacqueline Cowhig)
Reuters reported that prompt physical coal prices fell a marginal 50 US cents a tonne on Monday in line with weaker oil.
TRADES
An April South African cargo traded at USD 105.25, down 75 cents.
A March DES ARA Russian Panamax traded at USD 98.85, little changed
PRICES
An April South African cargo was bid at USD 105.25 and offered at USD 107.00, little changed
A March DES ARA cargo was bid at USD 95 and offered at USD 99, down around 50 cents
An April DES cargo was bid at USD 98.50 and offered at USD 100, down around 75 cents
Expectations of improved economic growth and consequent demand for power are reflected in the stronger forward prices.
Brent crude prices pulled back on Monday after a recent jump as concerns about the effect of higher oil prices on global growth and a stronger dollar helped counter ongoing fears about tensions with Iran.
(Reporting by Jacqueline Cowhig)
Friday, February 24, 2012
Steam coal prices stable despite modest gains in oil
Friday, 24 Feb 2012
Reuters reported that prompt physical coal prices were little changed on Thursday on muted trading activity and bid offer spreads for fixed price cargoes widened by around USD 1, too far apart for trades to seem likely.
An April South African cargo was bid at USD 105.75 and offered at USD 107.45, compared with bids and offers of USD 106 on Wednesday.
A May South African cargo was bid at USD 101.25 and offered at USD 102.50.
An April DES cargo was bid at USD 98.50 and offered at USD 100.50
One trader said “The market's moved sideways, if anything, just looking at the wider spreads.”
Oil at over USD 100 a barrel is providing structural support to coal prices, traders and analysts said, although there are spells when coal disconnects from oil and moves more on fundamentals.
(Sourced from Reuters)
Reuters reported that prompt physical coal prices were little changed on Thursday on muted trading activity and bid offer spreads for fixed price cargoes widened by around USD 1, too far apart for trades to seem likely.
An April South African cargo was bid at USD 105.75 and offered at USD 107.45, compared with bids and offers of USD 106 on Wednesday.
A May South African cargo was bid at USD 101.25 and offered at USD 102.50.
An April DES cargo was bid at USD 98.50 and offered at USD 100.50
One trader said “The market's moved sideways, if anything, just looking at the wider spreads.”
Oil at over USD 100 a barrel is providing structural support to coal prices, traders and analysts said, although there are spells when coal disconnects from oil and moves more on fundamentals.
(Sourced from Reuters)
Tuesday, February 21, 2012
South African steam coal prices rise
Tuesday, 21 Feb 2012
Reuters reported that prompt South African physical coal prices rose by around 50 cents on Monday as market participants tried to cover short positions taken at the end of last year amid tight supply for March in particular.
A March South African cargo was bid at USD 108.00 and offered at USD 110.00, up 50 cents on the bid.
An April South African cargo was bid at USD 105.35 and offered earlier at USD 105.90, up 40 cents.
A March DES ARA multi-origin cargo was bid at USD 96.00 and offered at USD 99.00, unchanged.
An April multi-origin cargo was bid at USD 99.00 and offered at USD 100.05, down USD 1.00 on the offer but unchanged on the bid.
Front month South African coal prices FOB Richards Bay have held a premium over subsequent months since January for the same reason and despite weak demand in Europe and Asia.
Players among banks, traders and utilities late last year sold coal swaps and physical in anticipation of being able to buy back at cheaper prices.
Although coal values have been dropping while China has remained out of the spot market, there is still some short-covering, which needs to be done and sellers are reluctant to offer while there's a chance Richards Bay prices will keep ticking higher.
(Sourced from Reuters)
Reuters reported that prompt South African physical coal prices rose by around 50 cents on Monday as market participants tried to cover short positions taken at the end of last year amid tight supply for March in particular.
A March South African cargo was bid at USD 108.00 and offered at USD 110.00, up 50 cents on the bid.
An April South African cargo was bid at USD 105.35 and offered earlier at USD 105.90, up 40 cents.
A March DES ARA multi-origin cargo was bid at USD 96.00 and offered at USD 99.00, unchanged.
An April multi-origin cargo was bid at USD 99.00 and offered at USD 100.05, down USD 1.00 on the offer but unchanged on the bid.
Front month South African coal prices FOB Richards Bay have held a premium over subsequent months since January for the same reason and despite weak demand in Europe and Asia.
Players among banks, traders and utilities late last year sold coal swaps and physical in anticipation of being able to buy back at cheaper prices.
Although coal values have been dropping while China has remained out of the spot market, there is still some short-covering, which needs to be done and sellers are reluctant to offer while there's a chance Richards Bay prices will keep ticking higher.
(Sourced from Reuters)
Saturday, February 18, 2012
Steam coal prices rise a bit amid quiet trade
Saturday, 18 Feb 2012
Reuters reported that prompt European physical coal prices ticked higher again by 50 cents to USD 1.50 on Friday as less coal was offered.
A March South African cargo was bid at USD 107.50 with an offer of USD 110.00, up USD 1.50 on the bid.
An April South African cargo was bid at USD 105.00 and offered earlier at USD 105.50, up over USD 1.50 on the bid.
A March DES ARA Russian cargo was bid at USD 98.00, up 25 cents.
An April multi origin cargo was offered at USD 102.00, also slightly higher.
No fresh trades were reported and activity was quiet, utilities and traders said.
DES ARA prices dipped on Wednesday to their lowest level for over a year alongside coal swaps, but the move down was overdone and a correction upwards was expected.
(Sourced from Reuters)
Reuters reported that prompt European physical coal prices ticked higher again by 50 cents to USD 1.50 on Friday as less coal was offered.
A March South African cargo was bid at USD 107.50 with an offer of USD 110.00, up USD 1.50 on the bid.
An April South African cargo was bid at USD 105.00 and offered earlier at USD 105.50, up over USD 1.50 on the bid.
A March DES ARA Russian cargo was bid at USD 98.00, up 25 cents.
An April multi origin cargo was offered at USD 102.00, also slightly higher.
No fresh trades were reported and activity was quiet, utilities and traders said.
DES ARA prices dipped on Wednesday to their lowest level for over a year alongside coal swaps, but the move down was overdone and a correction upwards was expected.
(Sourced from Reuters)
Wednesday, February 15, 2012
Steam coal prices remain stable despite many cargo offers
Wednesday, 15 Feb 2012
Reuters reported that heavy selling of prompt DES ARA cargoes continued on Tuesday by utilities and traders but there were more buyers in evidence than at the start of the week and prices were barely changed.
TRADES
A February delivery DES ARA cargo traded at USD 96.00 a tonne, barely changed.
A March delivery DES ARA cargo traded at USD 97.00, little changed from Monday.
A March loading South African cargo traded at USD 104.75, down 25 cents.
An April loading South African cargo traded at USD 103.20, unchanged.
A rise in temperatures after a spell of freezing weather has trimmed gas and power demand and prices but had little effect on coal, principally because coal prices showed a minimal reaction to the freeze.
The current oversupply as cargoes bought previously or under term contracts arrive in Europe will last only as long as China remains out of the spot market, utilities, traders and producers said. In the interim, prices will come under further pressure.
(Sourced from Reuters)
Reuters reported that heavy selling of prompt DES ARA cargoes continued on Tuesday by utilities and traders but there were more buyers in evidence than at the start of the week and prices were barely changed.
TRADES
A February delivery DES ARA cargo traded at USD 96.00 a tonne, barely changed.
A March delivery DES ARA cargo traded at USD 97.00, little changed from Monday.
A March loading South African cargo traded at USD 104.75, down 25 cents.
An April loading South African cargo traded at USD 103.20, unchanged.
A rise in temperatures after a spell of freezing weather has trimmed gas and power demand and prices but had little effect on coal, principally because coal prices showed a minimal reaction to the freeze.
The current oversupply as cargoes bought previously or under term contracts arrive in Europe will last only as long as China remains out of the spot market, utilities, traders and producers said. In the interim, prices will come under further pressure.
(Sourced from Reuters)
Tuesday, February 14, 2012
Steam coal prices dip further on Monday
Tuesday, 14 Feb 2012
Reuters reported that a surge of offers of almost every variety of coal in every cargo size for delivery into Europe pushed physical prices down by around USD 1.00 on Monday to USD 97.00.
TRADES
A March loading South African cargo traded at USD 105.00 a tonne on Friday but a 50,000 tonne March cargo also traded at USD 103.50, down around USD 1.00.
An April loading South African cargo traded at USD 103.10.
PRICES
A March DES ARA multi-origin including US coal cargo and a US cargo were offered at USD 96.90 and USD 96.96 with no bid.
A Russian March DES ARA cargo was offered at USD 98.60.
An April multi origin cargo was bid at USD 96.50 while a multi origin plus US cargo was offered at USD 97.95.
A March loading South African cargo was bid at USD 104.60 and offered at USD 105.00, down 50 cents on the bid.
Prices are set to remain below USD 100 with further falls possible until China resumes buying and a new global price floor is set by whatever price the Chinese are willing to pay. Fall in European power and gas prices also dragged coal lower, as temperatures rose by 15 degrees from last week's freezing conditions.
(Sourced from Reuters)
Reuters reported that a surge of offers of almost every variety of coal in every cargo size for delivery into Europe pushed physical prices down by around USD 1.00 on Monday to USD 97.00.
TRADES
A March loading South African cargo traded at USD 105.00 a tonne on Friday but a 50,000 tonne March cargo also traded at USD 103.50, down around USD 1.00.
An April loading South African cargo traded at USD 103.10.
PRICES
A March DES ARA multi-origin including US coal cargo and a US cargo were offered at USD 96.90 and USD 96.96 with no bid.
A Russian March DES ARA cargo was offered at USD 98.60.
An April multi origin cargo was bid at USD 96.50 while a multi origin plus US cargo was offered at USD 97.95.
A March loading South African cargo was bid at USD 104.60 and offered at USD 105.00, down 50 cents on the bid.
Prices are set to remain below USD 100 with further falls possible until China resumes buying and a new global price floor is set by whatever price the Chinese are willing to pay. Fall in European power and gas prices also dragged coal lower, as temperatures rose by 15 degrees from last week's freezing conditions.
(Sourced from Reuters)
Tuesday, February 7, 2012
Steam coal prices mixed despite gas and oil rise
Tuesday, 07 Feb 2012
Reuters reported that steam coal prices made modest gains of around 75 cents per tonne on Monday as the arrival of more cargoes balanced against a freeze across much of Europe, which drove up gas and oil prices.
A February delivery DES ARA parcel of multi origin, including American coal, was bid at USD 96.75 and offered at USD 98.00, up 75 cents.
A March DES ARA for coal was bid at USD 96.50 and offered at USD 100.50, down 50 cents.
A March South African cargo was bid at USD 105.00, down 50 cents.
Several European utilities and utility/traders signed term contracts two years ago to import American coal, which have kept stockpiles swollen through a winter that has been unusually mild until the latest cold snap.
As more US and Colombian cargoes arrive in Europe while spot buying remains weak, some downward pressure is expected on prices. How far this will be offset by a resumption of large scale Chinese imports, remains to be seen.
Floods in Australia and heavy rains during the past month in Indonesia are already delaying shipments, but so far end users have not been compelled to seek replacement tonnes.
(Sourced from Reuters)
Reuters reported that steam coal prices made modest gains of around 75 cents per tonne on Monday as the arrival of more cargoes balanced against a freeze across much of Europe, which drove up gas and oil prices.
A February delivery DES ARA parcel of multi origin, including American coal, was bid at USD 96.75 and offered at USD 98.00, up 75 cents.
A March DES ARA for coal was bid at USD 96.50 and offered at USD 100.50, down 50 cents.
A March South African cargo was bid at USD 105.00, down 50 cents.
Several European utilities and utility/traders signed term contracts two years ago to import American coal, which have kept stockpiles swollen through a winter that has been unusually mild until the latest cold snap.
As more US and Colombian cargoes arrive in Europe while spot buying remains weak, some downward pressure is expected on prices. How far this will be offset by a resumption of large scale Chinese imports, remains to be seen.
Floods in Australia and heavy rains during the past month in Indonesia are already delaying shipments, but so far end users have not been compelled to seek replacement tonnes.
(Sourced from Reuters)
Wednesday, January 25, 2012
Euro coal dips as China holiday hits demand
Wednesday, 25 Jan 2012
Reuters quoted traders and utilities said prompt European physical coal prices dipped by around 50 cents on Monday as the absence of Chinese players due to the New Year holiday began to be felt.
They said minimal European demand and a hiatus in Chinese buying should be strong enough factors to pull DES ARA European prices below the support level of USD 100 a tonne during the next two weeks from USD 105 currently.
Traders said oil strength is expected to limit coal potential to fall due to weak fundamentals but with key buyers out of the market some further price falls were highly likely in the very near term.
Firm oil prices mostly due to supply concerns have masked the effect of poor coal fundamentals. Oil retreated on Wednesday as optimism, spurred by talk the IMF may do more to help resolve the European debt crisis, proved shortlived with a gloomy demand outlook pressuring prices.
The FOB benchmarks for South African and Australian coal have been more robust. South African prompt cargoes have been bid higher by players counting on resumption soon of Chinese buying while Newcastle prices tend to be resilient while annual contracts with end-users are being negotiated.
Traders said coal API2 and API4 swaps saw the quietest trading day of the year so far.
One European trader said "Swaps have done almost nothing a lot of people are not around by 0930 GMT only one trade had taken place."
A utility source said "Today is the first day of the Chinese New Year and the buyers there are totally absent, won't be back for two weeks so that taken some support away from prices."
He added that "A few aggressive players are bidding up South African prompt cargoes in the hope that Asian buying will return after the New Year but European demand looks appalling."
(Sourced from Reuters)
Reuters quoted traders and utilities said prompt European physical coal prices dipped by around 50 cents on Monday as the absence of Chinese players due to the New Year holiday began to be felt.
They said minimal European demand and a hiatus in Chinese buying should be strong enough factors to pull DES ARA European prices below the support level of USD 100 a tonne during the next two weeks from USD 105 currently.
Traders said oil strength is expected to limit coal potential to fall due to weak fundamentals but with key buyers out of the market some further price falls were highly likely in the very near term.
Firm oil prices mostly due to supply concerns have masked the effect of poor coal fundamentals. Oil retreated on Wednesday as optimism, spurred by talk the IMF may do more to help resolve the European debt crisis, proved shortlived with a gloomy demand outlook pressuring prices.
The FOB benchmarks for South African and Australian coal have been more robust. South African prompt cargoes have been bid higher by players counting on resumption soon of Chinese buying while Newcastle prices tend to be resilient while annual contracts with end-users are being negotiated.
Traders said coal API2 and API4 swaps saw the quietest trading day of the year so far.
One European trader said "Swaps have done almost nothing a lot of people are not around by 0930 GMT only one trade had taken place."
A utility source said "Today is the first day of the Chinese New Year and the buyers there are totally absent, won't be back for two weeks so that taken some support away from prices."
He added that "A few aggressive players are bidding up South African prompt cargoes in the hope that Asian buying will return after the New Year but European demand looks appalling."
(Sourced from Reuters)
Tuesday, January 24, 2012
Steam coal prices dips as Chinese holiday starts
Tuesday, 24 Jan 2012
Prompt European physical coal prices dipped by around 50 cents on Monday as the absence of Chinese players due to the New Year holiday began to be felt.
TRADES
A March South African cargo traded at USD 105.75
PRICES
A February South African cargo was bid at USD 106.00, up 50 cents
A March South African cargo was bid at USD 105.50 and offered at USD 107.00
A March DES ARA cargo was offered at USD 105.25, down around 50 cents
An April DES ARA cargo was bid at USD 100.00 and offered at USD 105.75, also slightly weaker
Minimal European demand and a hiatus in Chinese buying should be strong enough factors to pull DES ARA European prices below the support level of USD 100 a tonne during the next two weeks, from USD 105 currently.
(Sourced from Reuters)
Prompt European physical coal prices dipped by around 50 cents on Monday as the absence of Chinese players due to the New Year holiday began to be felt.
TRADES
A March South African cargo traded at USD 105.75
PRICES
A February South African cargo was bid at USD 106.00, up 50 cents
A March South African cargo was bid at USD 105.50 and offered at USD 107.00
A March DES ARA cargo was offered at USD 105.25, down around 50 cents
An April DES ARA cargo was bid at USD 100.00 and offered at USD 105.75, also slightly weaker
Minimal European demand and a hiatus in Chinese buying should be strong enough factors to pull DES ARA European prices below the support level of USD 100 a tonne during the next two weeks, from USD 105 currently.
(Sourced from Reuters)
Wednesday, January 11, 2012
Euro coal prices dip with oil and utility selling
Wednesday, 11 Jan 2012
Reuters reported that prompt European physical coal prices fell by USD 1 to USD 2 per tonne on Monday in line with weaker oil, as some smaller European utilities started to sell cargoes they would not need due to the mild winter.
Last week the market appeared to have steadied and tight near-term supply of South African coal boosted prices which had slipped during the Christmas and New Year holidays. February South African prices saw a lesser fall of around 50 cents because supply for the first quarter remains tight but there was less visible interest from India for prompt cargoes out of Richards Bay.
One utility source said "The market's looking a bit more bearish because in Europe there been lower coal burn than expected, the winter been mild, it's wet and windy but not cold, China won't be back until the end of January and the shorts seem to have covered."
European trader said "Prices were slightly higher in the morning but have followed oil down.
Ms Emmanuel Fages analyst with Societe Generale said "Coal prices are very clearly linked to oil now."
Traders, utilities and analysts said prices may not slip much further, but unless there is a significant supply disruption such as floods in Australia, fundamentals look weaker than they did a year ago.
They said a trade on Monday morning for a March delivery DES ARA cargo at USD 109.00 a tonne down over USD 1.00 from Friday levels was a bearish sign.
(Sourced from Reuters)
Reuters reported that prompt European physical coal prices fell by USD 1 to USD 2 per tonne on Monday in line with weaker oil, as some smaller European utilities started to sell cargoes they would not need due to the mild winter.
Last week the market appeared to have steadied and tight near-term supply of South African coal boosted prices which had slipped during the Christmas and New Year holidays. February South African prices saw a lesser fall of around 50 cents because supply for the first quarter remains tight but there was less visible interest from India for prompt cargoes out of Richards Bay.
One utility source said "The market's looking a bit more bearish because in Europe there been lower coal burn than expected, the winter been mild, it's wet and windy but not cold, China won't be back until the end of January and the shorts seem to have covered."
European trader said "Prices were slightly higher in the morning but have followed oil down.
Ms Emmanuel Fages analyst with Societe Generale said "Coal prices are very clearly linked to oil now."
Traders, utilities and analysts said prices may not slip much further, but unless there is a significant supply disruption such as floods in Australia, fundamentals look weaker than they did a year ago.
They said a trade on Monday morning for a March delivery DES ARA cargo at USD 109.00 a tonne down over USD 1.00 from Friday levels was a bearish sign.
(Sourced from Reuters)
Monday, January 9, 2012
Steam coal prices rise on weekend on short covering
Monday, 09 Jan 2012
Reuters reported that prompt physical coal prices rose by 50-75 US cents a tonne on Friday as players covered short positions and Indian buying showed signs of picking up after several months of a lull.
Traders and utilities in Europe short of Colombian tonnes due to delays to shipments from two of the country biggest exporters, Drummond and Prodeco have been seeking replacement cargoes helping to bolster DES ARA prices.
Suppliers said the gap between South African physical prices and API4 coal swaps has narrowed substantially, enough to tempt Indian trade buyers back into the market.
Traders and utilities said South African coal supply for January is extremely tight, exporters. Almost nothing is available now for January and shrinking volumes for February.
They said the unusually high size of this prompt bid a bid or offer for more than a cape worth is almost unheard of versus the offer for only part of the tonnage sought is the best visible indicator of the market tightening.
Indian cement and sponge iron makers have this week bought several prompt South African cargoes and are seeking more, but the power sector is still squeezed between fixed electricity tariffs, strong coal prices and the weak rupee.
(Sourced from Reuters)
Reuters reported that prompt physical coal prices rose by 50-75 US cents a tonne on Friday as players covered short positions and Indian buying showed signs of picking up after several months of a lull.
Traders and utilities in Europe short of Colombian tonnes due to delays to shipments from two of the country biggest exporters, Drummond and Prodeco have been seeking replacement cargoes helping to bolster DES ARA prices.
Suppliers said the gap between South African physical prices and API4 coal swaps has narrowed substantially, enough to tempt Indian trade buyers back into the market.
Traders and utilities said South African coal supply for January is extremely tight, exporters. Almost nothing is available now for January and shrinking volumes for February.
They said the unusually high size of this prompt bid a bid or offer for more than a cape worth is almost unheard of versus the offer for only part of the tonnage sought is the best visible indicator of the market tightening.
Indian cement and sponge iron makers have this week bought several prompt South African cargoes and are seeking more, but the power sector is still squeezed between fixed electricity tariffs, strong coal prices and the weak rupee.
(Sourced from Reuters)
Thursday, January 5, 2012
Steam coal prices move up with oil on Iranian tension
Thursday, 05 Jan 2012
Reuters reported that physical prompt coal prices moved slightly higher on Wednesday, in line with gains in oil due to growing tension between Iran and the United States and European Union.
A few index inked DES ARA trades took place but no fixed price trades.
A January loading South African cargo was bid at USD 108.50 and offered at USD 112.50, up 25 cents.
A February cargo was bid at USD 104.50, while a March cargo was bid at USD 105.00, unchanged.
A January DES ARA cargo was bid at USD 108, up USD 1.00
A February DES ARA cargo was bid at USD 110.00 and offered at USD 115.00, up USD 1.50
Unless there are fresh supply disruptions, prices look set to continue to drift lower, traders and utilities said.
Coal would not be immune to a spike in oil prices if the United States and EU decide to place an embargo on Iranian oil imports and this escalates.
The US and EU on Wednesday agreed in principle to ban Iranian oil imports but have yet to decide when an embargo would come into effect.
Iran has threatened to close the Strait of Hormuz to oil shipping in response to sanctions.
(Sourced from Reuters)
Reuters reported that physical prompt coal prices moved slightly higher on Wednesday, in line with gains in oil due to growing tension between Iran and the United States and European Union.
A few index inked DES ARA trades took place but no fixed price trades.
A January loading South African cargo was bid at USD 108.50 and offered at USD 112.50, up 25 cents.
A February cargo was bid at USD 104.50, while a March cargo was bid at USD 105.00, unchanged.
A January DES ARA cargo was bid at USD 108, up USD 1.00
A February DES ARA cargo was bid at USD 110.00 and offered at USD 115.00, up USD 1.50
Unless there are fresh supply disruptions, prices look set to continue to drift lower, traders and utilities said.
Coal would not be immune to a spike in oil prices if the United States and EU decide to place an embargo on Iranian oil imports and this escalates.
The US and EU on Wednesday agreed in principle to ban Iranian oil imports but have yet to decide when an embargo would come into effect.
Iran has threatened to close the Strait of Hormuz to oil shipping in response to sanctions.
(Sourced from Reuters)
Friday, December 16, 2011
Steam coal prices remain stable
Friday, 16 Dec 2011
Reuters reported that physical prompt coal prices held steady on Thursday as the market ignored choppy oil trade but prices are likely to come under more pressure in the next few weeks due to poor demand.
A January delivery DES ARA cargo was bid at USD 109.50, unchanged.
A February multi origin DES ARA cargo was bid at USD 108.50 and offered at USD 110.00, unchanged.
A January South African cargo was bid at USD 102.25 and offered at USD 103.00.
(Sourced from Reuters)
Reuters reported that physical prompt coal prices held steady on Thursday as the market ignored choppy oil trade but prices are likely to come under more pressure in the next few weeks due to poor demand.
A January delivery DES ARA cargo was bid at USD 109.50, unchanged.
A February multi origin DES ARA cargo was bid at USD 108.50 and offered at USD 110.00, unchanged.
A January South African cargo was bid at USD 102.25 and offered at USD 103.00.
(Sourced from Reuters)
Thursday, December 15, 2011
Steam coal prices slip
Thursday, 15 Dec 2011
Reuters reported that physical prompt coal prices slipped again by around 50 cents to 75 cents on Wednesday in line with weaker oil, the euro and equities and in the absence of fresh spot trade.
A January delivery DES ARA cargo was bid at USD 112 a tonne for Russian coal only, delivered to Rotterdam only.
A February multi origin DES ARA cargo was bid at USD 109.50 and offered at USD 110.00, slightly lower than Monday.
A February Russian cargo was also bid at USD 112.00.
A December loading South African cargo was bid at USD 99.50 a tonne FOB Richards Bay.
A January South African cargo was bid at USD 101.20 and offered at USD 103.
No fixed price trades had taken place and most bids and offers had been withdrawn, a sign that the market has already largely wound down before the end of year holidays.
(Sourced from Reuters)
Reuters reported that physical prompt coal prices slipped again by around 50 cents to 75 cents on Wednesday in line with weaker oil, the euro and equities and in the absence of fresh spot trade.
A January delivery DES ARA cargo was bid at USD 112 a tonne for Russian coal only, delivered to Rotterdam only.
A February multi origin DES ARA cargo was bid at USD 109.50 and offered at USD 110.00, slightly lower than Monday.
A February Russian cargo was also bid at USD 112.00.
A December loading South African cargo was bid at USD 99.50 a tonne FOB Richards Bay.
A January South African cargo was bid at USD 101.20 and offered at USD 103.
No fixed price trades had taken place and most bids and offers had been withdrawn, a sign that the market has already largely wound down before the end of year holidays.
(Sourced from Reuters)
Friday, December 2, 2011
Euro Coal-Prices stable on equities, euro gains
Dec2, 2011
* No fixed price trades, API4 index deals at -$1-1.20
* Macros continue to be main driver
LONDON Dec 1 (Reuters) - Physical prompt coal prices were little changed on Thursday despite a fall in oil as signs of further economic slowdown in Europe and a weaker factory sector in China outweighed encouraging U.S. manufacturing data.
No fixed price trades were reported but there were several indexed trades for South African cargoes.
Unless supported by strong oil, equities and a weaker dollar, coal prices could drift lower between now and January because short-term fundamentals are bearish, traders and end-users said.
World stocks edged higher on Thursday while the euro gained for the fourth day and a Spanish debt sale saw good demand, keeping hopes alive that the euro zone debt crisis may be contained.
Further ahead in 2012 the outlook is less grim for coal and other bulk commodities.
"We continue to favour the fundamentals for copper, coal and iron ore," Credit Suisse said in its Metals and Mining research note.
Lack of spot demand from China and India has left suppliers struggling to place prompt cargoes already unwanted in Europe and there are almost no bullish fundamental factors.
South African exporters have sold their December cargoes but some players further down the cargo chains formed when cargoes trade multiple times are still battling to find buyers.
A South African prompt cape was being offered on Wednesday with no takers.
Global stocks rallied and the dollar slid on Wednesday after the world's leading central banks acted jointly to ensure financial markets rocked by the euro zone's escalating debt crisis have enough funding.
The banking measures bolstered the appetite for risk, lifting assets such as stocks and commodities while leading investors to dump safe-haven dollar and government debt.
TRADES
No fresh fixed price trades were reported.
A February South African cargo traded at $1.20 a tonne below the API4 index.
A Q2 API4 index trade also took place at $1.00 a tonne below the index.
PRICES
A January South African cargo was bid at $103.25, unchanged.
A February South African cargo was bid at $95.00. A January delivery DES ARA cargo was offered at $112.00, down $1.00.
A February DES ARA cargo was bid at $112.50.
(sourced Reuters)
* No fixed price trades, API4 index deals at -$1-1.20
* Macros continue to be main driver
LONDON Dec 1 (Reuters) - Physical prompt coal prices were little changed on Thursday despite a fall in oil as signs of further economic slowdown in Europe and a weaker factory sector in China outweighed encouraging U.S. manufacturing data.
No fixed price trades were reported but there were several indexed trades for South African cargoes.
Unless supported by strong oil, equities and a weaker dollar, coal prices could drift lower between now and January because short-term fundamentals are bearish, traders and end-users said.
World stocks edged higher on Thursday while the euro gained for the fourth day and a Spanish debt sale saw good demand, keeping hopes alive that the euro zone debt crisis may be contained.
Further ahead in 2012 the outlook is less grim for coal and other bulk commodities.
"We continue to favour the fundamentals for copper, coal and iron ore," Credit Suisse said in its Metals and Mining research note.
Lack of spot demand from China and India has left suppliers struggling to place prompt cargoes already unwanted in Europe and there are almost no bullish fundamental factors.
South African exporters have sold their December cargoes but some players further down the cargo chains formed when cargoes trade multiple times are still battling to find buyers.
A South African prompt cape was being offered on Wednesday with no takers.
Global stocks rallied and the dollar slid on Wednesday after the world's leading central banks acted jointly to ensure financial markets rocked by the euro zone's escalating debt crisis have enough funding.
The banking measures bolstered the appetite for risk, lifting assets such as stocks and commodities while leading investors to dump safe-haven dollar and government debt.
TRADES
No fresh fixed price trades were reported.
A February South African cargo traded at $1.20 a tonne below the API4 index.
A Q2 API4 index trade also took place at $1.00 a tonne below the index.
PRICES
A January South African cargo was bid at $103.25, unchanged.
A February South African cargo was bid at $95.00. A January delivery DES ARA cargo was offered at $112.00, down $1.00.
A February DES ARA cargo was bid at $112.50.
(sourced Reuters)
Saturday, November 12, 2011
Steam coal prices rise as oil and euro gains
Saturday, 12 Nov 2011
Reuters reported that prompt physical coal prices moved higher by a marginal 50 cents a tonne on Friday although few trades were reported, in line with gains in oil and the euro after Italy's Senate approved economic reforms aimed at restoring investor confidence.
Two December South African cargoes traded at USD 103.50 and USD 104.00 via brokers.
A December loading South African cargo was bid at USD 104.00 and offered at USD 108.00, down 50 cents.
A January South African cargo was offered at USD 108.75.
A November delivery Russian DES ARA cargo was bid at USD 107 and offered at USD 117.
A December delivery DES ARA cargo was bid at USD 115 for Russian material and offered at USD 116, down 25 cents.
(Sourced from Reuters)
Reuters reported that prompt physical coal prices moved higher by a marginal 50 cents a tonne on Friday although few trades were reported, in line with gains in oil and the euro after Italy's Senate approved economic reforms aimed at restoring investor confidence.
Two December South African cargoes traded at USD 103.50 and USD 104.00 via brokers.
A December loading South African cargo was bid at USD 104.00 and offered at USD 108.00, down 50 cents.
A January South African cargo was offered at USD 108.75.
A November delivery Russian DES ARA cargo was bid at USD 107 and offered at USD 117.
A December delivery DES ARA cargo was bid at USD 115 for Russian material and offered at USD 116, down 25 cents.
(Sourced from Reuters)
Wednesday, November 2, 2011
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)
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)
Wednesday, October 19, 2011
Euro Coal-Prices fall in thin trading
Wed Oct 19, 2011
* Economic weakness hampers physical demand
* Supply side looks healthy
LONDON Oct 19 (Reuters) - Prompt physical coal prices on Wednesday continued the week's downward trend on a day of minimal activity.
European demand continued to be low, and traders said that the outlook remained bearish.
"On the economic front, things aren't going to improve much even if we can avoid a double-dip recession, so that implies a sideways or downward movement as physical demand continues to drop or remains flat, while the supply side of coal looks good as a repeat of last year's floods in Australia is unlikely," one coal trader said.
In the paper market, API2 2012 coal swaps fell to $115.25 a tonne, their lowest level since February.
"Prices are going down, because the amount of shorts in the market is rising fast, and I don't see a big price recovery soon," another coal trader said.
TRADES
No trades were heard, but December South African coal deliveries had a bid-offer spread of $107-110.25 per tonne.
On Tuesday, a December South African cargoe traded at $111.25 a tonne.
No December DES ARA cargo was heard, but January deliveries saw a bid for $113.25 a tonne.
(sourced Reuters)
* Economic weakness hampers physical demand
* Supply side looks healthy
LONDON Oct 19 (Reuters) - Prompt physical coal prices on Wednesday continued the week's downward trend on a day of minimal activity.
European demand continued to be low, and traders said that the outlook remained bearish.
"On the economic front, things aren't going to improve much even if we can avoid a double-dip recession, so that implies a sideways or downward movement as physical demand continues to drop or remains flat, while the supply side of coal looks good as a repeat of last year's floods in Australia is unlikely," one coal trader said.
In the paper market, API2 2012 coal swaps fell to $115.25 a tonne, their lowest level since February.
"Prices are going down, because the amount of shorts in the market is rising fast, and I don't see a big price recovery soon," another coal trader said.
TRADES
No trades were heard, but December South African coal deliveries had a bid-offer spread of $107-110.25 per tonne.
On Tuesday, a December South African cargoe traded at $111.25 a tonne.
No December DES ARA cargo was heard, but January deliveries saw a bid for $113.25 a tonne.
(sourced Reuters)
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