Bohai Thermal Coal prices fall for 14th consecutive week

Friday, 17 Feb 2012

The benchmark Bohai Rim Steam Coal Price Index which tracks power station coal prices at 6 ports fell for the 14 consecutive week due to the lingering sluggish market demand along with recent significant falls in coal prices and lower freight rates.

Data showed that the average price of thermal coal with calorific value of 5500 Kcal per kilogram clocked in at CNY 777 per tonne in the week ended February 15th 2012 down 0.26% or CNY 2 per tonne from a week earlier and indicating an aggregated decline of CNY 76 per tonne.

At Qinhuangdao port, the price of 5500 Kcal per kilogram thermal coal dropped CNY 5 per tonne to reach in the range of CNY 765 per tonne to CNY 775 per tonne. The median price level of CNY 770 per tonne was CNY 30 per tonne lower than the ceiling price imposed by the National Development and Reform Commission.

Despite depressing track records over the past weeks, thermal coal prices at the ports are expected to move up in the not too far future driven by slow recovery in coal market coupled with slight rebound in freight rates for carrying coal from the ports.
(source: www.steelhome.cn/en)

South African steam coal prices jump up on Egyptian crisis

Tue, Feb1, 2011

Reuters reported that prompt coal prices rose by nearly USD 3 per tonne in both swaps and physical markets on Monday, largely in response to the Egyptian crisis. Oil prices jumped in response to the Egyptian unrest. Brent traded at USD 99 a barrel.

A March delivery DES ARA cargo traded at USD 122.25, up by USD 3.
An April delivery DES ARA cargo was bid at USD 118.5 and offered at USD 122.5, up USD 2 on the bid.

A March loading South African cargo was bid at USD 122.50 up by USD 3.
Fundamentally, little has changed in the physical coal market. Demand in Europe remains minimal with the exception of Finland where some spot buying is being done. Indian and Chinese buyers remain on the sidelines waiting for prices to fall.

Prices could spike again, however, traders and utilities said, if the cyclone hits Queensland and keeps ports shut and delays repairs from December's floods or if oil shoots higher due to events in Egypt.(Reporting by Jackie Cowhig, sourced:reuters)