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)
Showing posts with label European physical coal prices. Show all posts
Showing posts with label European physical coal prices. Show all posts
Wednesday, February 29, 2012
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)
Monday, February 13, 2012
Europe coal loses to South Africa on renewables - Energy Markets
Monday, 13 Feb 2012
Germany's biggest program of solar and wind power production has driven European coal prices below South Africa's for the first time in 10 months.
According to IHS McCloskey data, coal in northwest Europe cost USD 3.55 a metric tonne less than supplies from South Africa's Richards Bay yesterday, the widest discount for next-month prices since May 5, 2010. According to Barclays Plc, the difference is likely to keep increasing as European demand weakens and Asia boosts imports from South Africa.
Mr Bevan Jones a general manager at London Commodity Brokers Ltd said that “Producers are asking themselves if this is a seismic shift, and I think this move probably is sustainable.” He said that “Europe remains well supplied by the US, Colombia and Russia, while demand is on its weak side. Meanwhile, demand is consistent in Asia.”
Coal prices in Europe have fallen 7.5% this year as nations increase the amount of energy they get from alternative sources. Germany, the continent's biggest power market, installed a record 3,000 megawatts of new solar panels in December, the Bonn-based Bundesnetzagentur, the network regulator. Coal stockpiles at the biggest storage site in the Netherlands are 6.7% above year ago levels, according to Europees Massagoed-Overslagbedrijf BV, which operates the terminal.
(Sourced from Bloomberg)
Germany's biggest program of solar and wind power production has driven European coal prices below South Africa's for the first time in 10 months.
According to IHS McCloskey data, coal in northwest Europe cost USD 3.55 a metric tonne less than supplies from South Africa's Richards Bay yesterday, the widest discount for next-month prices since May 5, 2010. According to Barclays Plc, the difference is likely to keep increasing as European demand weakens and Asia boosts imports from South Africa.
Mr Bevan Jones a general manager at London Commodity Brokers Ltd said that “Producers are asking themselves if this is a seismic shift, and I think this move probably is sustainable.” He said that “Europe remains well supplied by the US, Colombia and Russia, while demand is on its weak side. Meanwhile, demand is consistent in Asia.”
Coal prices in Europe have fallen 7.5% this year as nations increase the amount of energy they get from alternative sources. Germany, the continent's biggest power market, installed a record 3,000 megawatts of new solar panels in December, the Bonn-based Bundesnetzagentur, the network regulator. Coal stockpiles at the biggest storage site in the Netherlands are 6.7% above year ago levels, according to Europees Massagoed-Overslagbedrijf BV, which operates the terminal.
(Sourced from Bloomberg)
Monday, January 30, 2012
Europe ARA thermal coal trades at $105/mt for Mar-delivery
Monday, January 30, 2012, Rabi-ul-Awal 06, 1433
London (Platts)- The European-delivered CIF ARA thermal coal physical market saw a March-delivery cargo trade at $105/mt first thing Monday morning, 50 cents higher than Platts Friday 90-day assessed price, although on par with the March prompt-month assessment.
The deal for 50,000 mt of generic-origin material for delivery into Rotterdam went through via the globalCOAL screen with exchange of futures for physical terms attached. It was said to have taken place between two northwestern European utilities.
The CIF ARA market has been quiet in recent weeks, with ample stocks in ARA limiting coal demand. Physical levels have been mostly tracking the moves of the financial derivatives market, which in turn have been supported by strong macroeconomics, a higher energy complex, imminent colder weather and short-covering.
(sourced Platts)
London (Platts)- The European-delivered CIF ARA thermal coal physical market saw a March-delivery cargo trade at $105/mt first thing Monday morning, 50 cents higher than Platts Friday 90-day assessed price, although on par with the March prompt-month assessment.
The deal for 50,000 mt of generic-origin material for delivery into Rotterdam went through via the globalCOAL screen with exchange of futures for physical terms attached. It was said to have taken place between two northwestern European utilities.
The CIF ARA market has been quiet in recent weeks, with ample stocks in ARA limiting coal demand. Physical levels have been mostly tracking the moves of the financial derivatives market, which in turn have been supported by strong macroeconomics, a higher energy complex, imminent colder weather and short-covering.
(sourced Platts)
Saturday, January 28, 2012
Dollar fall boosts Euro coal prompt prices
Saturday, 28 Jan 2012
Reuters reported that US dollar fell to its lowest for almost two months on Thursday, giving a sharp boost to coal prices which have sagged this month due to weak fundamentals globally.
Two March loading South African cargoes traded early in the day at USD 108.50 and USD 108.75, up over USD 3.00 from Wednesday, bought by banks and traders, sold by a large, international trading house.
Coal swaps rallied on Thursday, bolstered by European utilities hedging dark spreads (the profit margin from using coal to generate power) and oil's rise, despite the lack of physical buying and high stockpile levels.
End users in Europe and Asia remained noticeable for the absence from the market.
Traders said that whether China resumes large scale spot buying after the New Year holidays is absolutely critical for coal price direction, regardless of the gyrations of the swaps market.
China overtook Japan as the world's largest coal importer last year after a surge in imports in the last quarter to a total of 182.4 million tonnes, nearly 11 percent up from the previous year, much of it bought on a spot basis.
One European trader said that "The dollar got hammered overnight and that's pulled commodities up including coal, but the swaps, particularly the Calendar years, have risen even more.”
(Sourced from Thomson Reuters)
Reuters reported that US dollar fell to its lowest for almost two months on Thursday, giving a sharp boost to coal prices which have sagged this month due to weak fundamentals globally.
Two March loading South African cargoes traded early in the day at USD 108.50 and USD 108.75, up over USD 3.00 from Wednesday, bought by banks and traders, sold by a large, international trading house.
Coal swaps rallied on Thursday, bolstered by European utilities hedging dark spreads (the profit margin from using coal to generate power) and oil's rise, despite the lack of physical buying and high stockpile levels.
End users in Europe and Asia remained noticeable for the absence from the market.
Traders said that whether China resumes large scale spot buying after the New Year holidays is absolutely critical for coal price direction, regardless of the gyrations of the swaps market.
China overtook Japan as the world's largest coal importer last year after a surge in imports in the last quarter to a total of 182.4 million tonnes, nearly 11 percent up from the previous year, much of it bought on a spot basis.
One European trader said that "The dollar got hammered overnight and that's pulled commodities up including coal, but the swaps, particularly the Calendar years, have risen even more.”
(Sourced from Thomson 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)
Friday, January 13, 2012
Euro coal prices fall USD 1 per tonne with oil and low coal burn
Friday, 13 Jan 2012
Reuters reported that prompt European physical coal prices slipped by around USD 1.00 a tonne recently as utilities sold coal swaps in the face of weak coal burn across most of northern Europe after the warmest winter for 30 years.
Traders and utilities said a USD 1.00 fall in oil prices as risk aversion returned to the market and a rise in oil stockpiles in the US also helped pull coal lower.
One European utility source said "There was a lot of utility selling earlier today, everybody's got too much coal and the burn outside of southern Europe has been poor."
A European trader said "Oil fell, swaps fell and a lot of people backed off as a result."
No fixed price trades were reported.
(Sourced from Reuters)
Reuters reported that prompt European physical coal prices slipped by around USD 1.00 a tonne recently as utilities sold coal swaps in the face of weak coal burn across most of northern Europe after the warmest winter for 30 years.
Traders and utilities said a USD 1.00 fall in oil prices as risk aversion returned to the market and a rise in oil stockpiles in the US also helped pull coal lower.
One European utility source said "There was a lot of utility selling earlier today, everybody's got too much coal and the burn outside of southern Europe has been poor."
A European trader said "Oil fell, swaps fell and a lot of people backed off as a result."
No fixed price trades were reported.
(Sourced from Reuters)
Monday, December 19, 2011
Euro steam coal spreads widen and activity muted
Monday, 19 Dec 2011
Reuters reported that physical prompt thermal coal prices were little changed again on Friday but few players were active in the market and the bid/offer spreads widened as a result.
In the absence of fresh spot trade to give clear price direction, coal is tracking oil, equities and the euro, as it has for the past few months. Oil edged up near GBP 104 a barrel on Friday consolidating after heavy falls earlier in the week due to the weaker dollar and concerns about US sanctions against Iran but euro zone debt worries capped gains.
There was so little coal trading activity on Friday however that prices barely reacted to oil steadier tone. Traders, producers and utilities are focused more on Q1 where the hot spots of demand might be and what kind of support for prices could come from severe weather.
Australia is preparing for another active cyclone season as a La Nina weather pattern again brings heavy rains. The impact of another La Nina is not expected to be as severe as last year when successive cyclones and tropical storms through the winter and spring flooded coal mines in Queensland states and caused coal prices to spike.
One European trader said "Few people among the usual players were in the market, the holidays seem to have started early and the bid/offer spreads are so wide that clearly very little if anything is going to trade."
There is more talk in the market of substantial tonnages of American high-sulphur coal with 1.5% to 3% sulphur content arriving in Europe and more to come during 2012.
Utilities say they have already absorbed as much blend able high sulphur coal as they can for the next few months much of this is held on stockpiles in ARA and at power plants. Traders with long positions in US coal who had expected to place this in Europe are now hoping that China and India will buy more of this material if it is discounted enough.
Failing that, competition to win the relatively few tenders to buy coal issued in the Atlantic basin is expected to hot up as new entrant traders and banks look for all openings to sell physical coal.
Chinese importers are still enquiring for prompt coal cargoes although buying has slowed but the price window for imports remains wide open, according to a commodities research note issued by Credit Suisse.
(Sourced from Reuters)
Reuters reported that physical prompt thermal coal prices were little changed again on Friday but few players were active in the market and the bid/offer spreads widened as a result.
In the absence of fresh spot trade to give clear price direction, coal is tracking oil, equities and the euro, as it has for the past few months. Oil edged up near GBP 104 a barrel on Friday consolidating after heavy falls earlier in the week due to the weaker dollar and concerns about US sanctions against Iran but euro zone debt worries capped gains.
There was so little coal trading activity on Friday however that prices barely reacted to oil steadier tone. Traders, producers and utilities are focused more on Q1 where the hot spots of demand might be and what kind of support for prices could come from severe weather.
Australia is preparing for another active cyclone season as a La Nina weather pattern again brings heavy rains. The impact of another La Nina is not expected to be as severe as last year when successive cyclones and tropical storms through the winter and spring flooded coal mines in Queensland states and caused coal prices to spike.
One European trader said "Few people among the usual players were in the market, the holidays seem to have started early and the bid/offer spreads are so wide that clearly very little if anything is going to trade."
There is more talk in the market of substantial tonnages of American high-sulphur coal with 1.5% to 3% sulphur content arriving in Europe and more to come during 2012.
Utilities say they have already absorbed as much blend able high sulphur coal as they can for the next few months much of this is held on stockpiles in ARA and at power plants. Traders with long positions in US coal who had expected to place this in Europe are now hoping that China and India will buy more of this material if it is discounted enough.
Failing that, competition to win the relatively few tenders to buy coal issued in the Atlantic basin is expected to hot up as new entrant traders and banks look for all openings to sell physical coal.
Chinese importers are still enquiring for prompt coal cargoes although buying has slowed but the price window for imports remains wide open, according to a commodities research note issued by Credit Suisse.
(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)
Sunday, December 11, 2011
Euro Coal-Prices dip despite oil steadying
Sunday, Dec11, 2011
* Danube water levels rise
* Japanese start term contract talks
LONDON (Reuters) - Physical prompt coal prices dipped slightly on Friday after a week of limited activity which left coal tracking oil and currencies while fundamentals took a back seat.
Oil prices steadied at around $108 on Friday after the euro zone agreed closer fiscal union to save its currency.
Coal trading activity has already fallen off considerably ahead of the Christmas and New Year holidays - both end-users and suppliers have squared their books and have little appetite for new business, traders and utilities said.
Aside from some Indian tenders for supply through 2012, there has been little evidence of consumer buying interest this week in either Europe or Asia.
Water levels on Germany's Danube river have recovered to levels which allow fully-loaded barges to sail but unless there is an unexpectedly harsh winter, utilities said they are unlikely to buy more spot coal in December and January .
China, the key spot buyer this year, is still enquiring for prompt cargoes but new deals are not being done.
Stockpiles remain high at Chinese ports and there is a lot of wrangling between suppliers and importers over who pays the hefty demurrage costs for vessels forced to wait before discharging cargo, suppliers said.
Chinese thermal coal inventories are currently around 16 days and utilities are not in urgent need of supply .
Australian coal prices FOB Newcastle have remained flat at around $111 a tonne and are likely to remain at that level or drift slightly lower over the holiday period.
Negotiations between Japanese utilities and Australian suppliers for term contracts have already begun and suppliers are in no rush to settle because spot prices are $20 below the current 2011 contract price which was a record $129.85.
"A lot of people are already on holiday and that's reflected in the lack of bids and offers in Europe. The market's looking rather weak in the Atlantic and Pacific, it's been supported by oil and little else recently," one major European trader said.
"Chinese buyers are still enquiring and there is still some buying taking place," another trader said.
PRICES
A January loading South African cargo was bid at $101.50 and offered at $102.75, down 50 cents on the offer. A February South African cargo was bid at $100.00 and offered at $102.75, down $1.00 on the bid. A January delivery DES ARA cargo was offered at $110.50, down $1.00. A February DES ARA cargo was bid at $111.25 and offered at $111.75, down 25 cents.
(sourced Reuters)
* Danube water levels rise
* Japanese start term contract talks
LONDON (Reuters) - Physical prompt coal prices dipped slightly on Friday after a week of limited activity which left coal tracking oil and currencies while fundamentals took a back seat.
Oil prices steadied at around $108 on Friday after the euro zone agreed closer fiscal union to save its currency.
Coal trading activity has already fallen off considerably ahead of the Christmas and New Year holidays - both end-users and suppliers have squared their books and have little appetite for new business, traders and utilities said.
Aside from some Indian tenders for supply through 2012, there has been little evidence of consumer buying interest this week in either Europe or Asia.
Water levels on Germany's Danube river have recovered to levels which allow fully-loaded barges to sail but unless there is an unexpectedly harsh winter, utilities said they are unlikely to buy more spot coal in December and January .
China, the key spot buyer this year, is still enquiring for prompt cargoes but new deals are not being done.
Stockpiles remain high at Chinese ports and there is a lot of wrangling between suppliers and importers over who pays the hefty demurrage costs for vessels forced to wait before discharging cargo, suppliers said.
Chinese thermal coal inventories are currently around 16 days and utilities are not in urgent need of supply .
Australian coal prices FOB Newcastle have remained flat at around $111 a tonne and are likely to remain at that level or drift slightly lower over the holiday period.
Negotiations between Japanese utilities and Australian suppliers for term contracts have already begun and suppliers are in no rush to settle because spot prices are $20 below the current 2011 contract price which was a record $129.85.
"A lot of people are already on holiday and that's reflected in the lack of bids and offers in Europe. The market's looking rather weak in the Atlantic and Pacific, it's been supported by oil and little else recently," one major European trader said.
"Chinese buyers are still enquiring and there is still some buying taking place," another trader said.
PRICES
A January loading South African cargo was bid at $101.50 and offered at $102.75, down 50 cents on the offer. A February South African cargo was bid at $100.00 and offered at $102.75, down $1.00 on the bid. A January delivery DES ARA cargo was offered at $110.50, down $1.00. A February DES ARA cargo was bid at $111.25 and offered at $111.75, down 25 cents.
(sourced 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)
Saturday, October 29, 2011
Euro Coal-prices rise despite weaker oil
Oct29, 2011
LONDON (Reuters) - European prompt physical coal prices rose slightly on Friday, shrugging off falls in oil and coal swaps.
Physical demand remained thin, because some players with long positions lack the capacity to burn coal and many utilities are burning down their stockpiles before ordering new deliveries.
A December FOB Richards Bay trade was heard at $110.25 a tonne, which was on the upper end of the previous day's bid/offer range of $105/$110.25 a tonne and 65 cents higher than the last heard deal.
Coal futures were also up, with the API2 2012 swaps contract rising to $120 a tonne for the first time since Oct. 13.
Because of the previous downtrend, the 50 exponential daily moving average (DMA) remained below its longer-term 100 and 200 DMAs.
Traders said that strong figures from China Shenhua Energy Co Ltd , the country's largest coal producer and the world's most valuable coal producer, had encouraged the coal market.
Despite its strong figures, Shenhua Energy warned of a slowdown in economic growth, which could drag on energy demand.
The strength came despite a fall in crude oil prices, as traders cashed in on strong rises the previous few sessions.
ICE Brent December crude fell $2.14 to $109.94 a barrel by 1310 GMT, having traded from $109.71 to $112.23.
TRADES
A South African delivery for December was heard at $110.25 a tonne.
PRICES
A South Africa November cargo had a bid at $106 and an offer of $107.50 a tonne.
A December DES ARA cargo was offered at $123.75 a tonne.
(sourced Reuters)
LONDON (Reuters) - European prompt physical coal prices rose slightly on Friday, shrugging off falls in oil and coal swaps.
Physical demand remained thin, because some players with long positions lack the capacity to burn coal and many utilities are burning down their stockpiles before ordering new deliveries.
A December FOB Richards Bay trade was heard at $110.25 a tonne, which was on the upper end of the previous day's bid/offer range of $105/$110.25 a tonne and 65 cents higher than the last heard deal.
Coal futures were also up, with the API2 2012 swaps contract rising to $120 a tonne for the first time since Oct. 13.
Because of the previous downtrend, the 50 exponential daily moving average (DMA) remained below its longer-term 100 and 200 DMAs.
Traders said that strong figures from China Shenhua Energy Co Ltd , the country's largest coal producer and the world's most valuable coal producer, had encouraged the coal market.
Despite its strong figures, Shenhua Energy warned of a slowdown in economic growth, which could drag on energy demand.
The strength came despite a fall in crude oil prices, as traders cashed in on strong rises the previous few sessions.
ICE Brent December crude fell $2.14 to $109.94 a barrel by 1310 GMT, having traded from $109.71 to $112.23.
TRADES
A South African delivery for December was heard at $110.25 a tonne.
PRICES
A South Africa November cargo had a bid at $106 and an offer of $107.50 a tonne.
A December DES ARA cargo was offered at $123.75 a tonne.
(sourced 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)
Wednesday, August 17, 2011
European coal prices finally fell ending a four day advance
Wednesday, 17 Aug 2011
It is reported that coal for delivery to Amsterdam, Rotterdam or Antwerp with settlement next year fell 0.5% to USD 127 a metric tonne by 12:21 PM in London. Before August 16th 2011, prices climbed by 2% since August 9.
European utilities began to stockpile thermal coal last week for winter, helping to make the Atlantic coal market more balanced, Ms Judy Zhu an analyst at Standard Chartered Plc said that “There will be a decisive increase in demand next month.”
(Sourced from Bloomberg)
It is reported that coal for delivery to Amsterdam, Rotterdam or Antwerp with settlement next year fell 0.5% to USD 127 a metric tonne by 12:21 PM in London. Before August 16th 2011, prices climbed by 2% since August 9.
European utilities began to stockpile thermal coal last week for winter, helping to make the Atlantic coal market more balanced, Ms Judy Zhu an analyst at Standard Chartered Plc said that “There will be a decisive increase in demand next month.”
(Sourced from Bloomberg)
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