Over-the-counter coal prices tumbled Tuesday, retracing a portion of Monday's gains as traders questioned market fundamentals and took profits.
Exceeding losses posted in European-delivered coal markets, front-month February 2011 Central Appalachian barge coal traded as low as $81.25/st, $2 below the prior Platts assessment. The CAPP barge forward curve returned to contango following selling in the February and March 2011 contracts.
The 90-day CIF ARA European-delivered coal market was assessed by Platts down $0.50/mt at $130.50/mt.
All OTC coal products traded lower Tuesday. CAPP rail (CSX) front-month February 2011 traded at $74.75/st, $3.15 below the prior Platts assessment, while in Western rail, Powder River Basin 8,800-Btu/lb February 2011 traded at $12.90/st, down 15 cents.
OTC markets opened offered, retracing sizeable gains on Monday. Prices pushed lower through the session, with selling volume biased toward the Q2 2011 CAPP barge contract.
A US coal trader attributed the selling to both the large gains posted on Monday, in addition to broader concerns regarding global demand and economic recovery, highlighted by selling in the petroleum market.
Front-month CAPP barge sold off sharply. The term opened at $82.50/st for five barges, before pressing lower to $81.25/st for five barges, $2 below the prior Platts assessment. March 2011 reported equal losses, trading at $81.75/st and at $82/st for five barges each. The term was assessed at $83.25/st by Platts on Monday.
Q2 2011 opened at $83/st, trading for five barges twice and for 10 barges, before pressing lower to trade at $82.50/st, $81.80/st, $81.65/st, $81.90/st and $82/st, each for five barges. At $82/st, the contract stood down $1.25/st from the prior Platts assessment.
Into the second half of 2011, Q3 traded at $82.35/st and $82.25/st for five barges. Platts assessed the term at $83/st on Monday.
Cal 2012 traded at $84.50/st before falling to $83.90/st, each for five barges. Both price points stood below the prior Platts assessment of $85/st.
In the CAPP rail market, February 2011 traded twice at $74.75/st, each for the delivery of one train. Second-half 2011 CAPP rail financial swaps traded in a spread against CAPP barge at a discount of 70 cents/st. CAPP rail swaps also traded in spreads of Q2 2011 over Q3 2011 at a discount of 90 cents, $1.40 and twice at $1.30, each for 5,000 st.
CAPP rail (NS) traded once in the February 2011 term at $75.50/st for the delivery of one train, a premium of $1/st to CAPP rail (CSX).
PRB 8,800 physical traded twice in the February 2011 term at $12.90/st, each for the delivery of one train.
Exceeding losses posted in European-delivered coal markets, front-month February 2011 Central Appalachian barge coal traded as low as $81.25/st, $2 below the prior Platts assessment. The CAPP barge forward curve returned to contango following selling in the February and March 2011 contracts.
The 90-day CIF ARA European-delivered coal market was assessed by Platts down $0.50/mt at $130.50/mt.
All OTC coal products traded lower Tuesday. CAPP rail (CSX) front-month February 2011 traded at $74.75/st, $3.15 below the prior Platts assessment, while in Western rail, Powder River Basin 8,800-Btu/lb February 2011 traded at $12.90/st, down 15 cents.
OTC markets opened offered, retracing sizeable gains on Monday. Prices pushed lower through the session, with selling volume biased toward the Q2 2011 CAPP barge contract.
A US coal trader attributed the selling to both the large gains posted on Monday, in addition to broader concerns regarding global demand and economic recovery, highlighted by selling in the petroleum market.
Front-month CAPP barge sold off sharply. The term opened at $82.50/st for five barges, before pressing lower to $81.25/st for five barges, $2 below the prior Platts assessment. March 2011 reported equal losses, trading at $81.75/st and at $82/st for five barges each. The term was assessed at $83.25/st by Platts on Monday.
Q2 2011 opened at $83/st, trading for five barges twice and for 10 barges, before pressing lower to trade at $82.50/st, $81.80/st, $81.65/st, $81.90/st and $82/st, each for five barges. At $82/st, the contract stood down $1.25/st from the prior Platts assessment.
Into the second half of 2011, Q3 traded at $82.35/st and $82.25/st for five barges. Platts assessed the term at $83/st on Monday.
Cal 2012 traded at $84.50/st before falling to $83.90/st, each for five barges. Both price points stood below the prior Platts assessment of $85/st.
In the CAPP rail market, February 2011 traded twice at $74.75/st, each for the delivery of one train. Second-half 2011 CAPP rail financial swaps traded in a spread against CAPP barge at a discount of 70 cents/st. CAPP rail swaps also traded in spreads of Q2 2011 over Q3 2011 at a discount of 90 cents, $1.40 and twice at $1.30, each for 5,000 st.
CAPP rail (NS) traded once in the February 2011 term at $75.50/st for the delivery of one train, a premium of $1/st to CAPP rail (CSX).
PRB 8,800 physical traded twice in the February 2011 term at $12.90/st, each for the delivery of one train.
