Despite sparse volumes and bearish natural gas data, Central Appalachian rail-delivered coal prices surged $2/st higher, largely on the global supply crunch, in Thursday's over-the-counter trading, which saw activity centered in the front months.
While the near-term CAPP barge (OTC) prices remained relatively flat, the forward terms rose in response to the surge in CAPP rail (CSX) prices.
Q2 2011 CAPP barge (OTC) coal traded 10 cents below Platts' Wednesday assessment of $78/st, while in the CAPP rail (CSX) market, January traded $2.25 higher than the prior day's trade and a February-March 2011 strip trade went for $74/st.
The Powder River Basin coal market was shut out Thursday.
Sources attributed Thursday's OTC price hikes directly to global supply concerns stemming from severe rains in the Australian state of Queensland, which are causing more and more companies to declare force majeure on sales contracts.
Thursday saw Anglo American join BHP Billiton-Mitsubishi Alliance and Rio Tinto in invoking the legal clause on coal deliveries. QR National closed the Goonyella rail system December 24 due to a derailment and flooding.
Meanwhile, a coal train derailment Thursday on the line into the Richards Bay South terminal in South Africa only added to the supply concerns. At least 70 trains, representing 500,000 mt of coal, are already backed up due to the derailment.
With traders predicting a steady creep upward in Atlantic thermal coal prices and keeping a close eye on developments in both South Africa and Australia, Platts assessed the daily 90-day CIF ARA price at $131/mt, up $1/mt; FOB barge (ARA) at $133.50/mt, up $1/mt; FOB Richards Bay at $128/mt, up $1/mt; and FOB Newcastle unchanged at $130/mt.
CAPP rail (CSX) and barge (OTC) prices were also boosted to some extent by a late rally in the front-month NYMEX natural gas futures contract, which closed 5.1 cents higher at $4.338/MMBtu, as traders squared their books ahead of the new year. The late rally came despite bearish storage data released by the US Energy Information Administration, which reported a draw of 136 Bcf, less than the expected draw of 145 Bcf to 149 Bcf.
Q2 2011 CAPP barge (OTC) coal trading for five barges at $77.90/st was the only trade reported on Thursday for this sector.
In the CAPP rail (CSX) market, one train of January traded at $74/st, up $2.25/st from Wednesday's trade at $71.75/st. Also, a February-March strip for one train each of CAPP rail (CSX) coal traded at $74/st. On Wednesday, Platts assessed February at $72/st and March at $72.75/st.
--Amena Saiyid
While the near-term CAPP barge (OTC) prices remained relatively flat, the forward terms rose in response to the surge in CAPP rail (CSX) prices.
Q2 2011 CAPP barge (OTC) coal traded 10 cents below Platts' Wednesday assessment of $78/st, while in the CAPP rail (CSX) market, January traded $2.25 higher than the prior day's trade and a February-March 2011 strip trade went for $74/st.
The Powder River Basin coal market was shut out Thursday.
Sources attributed Thursday's OTC price hikes directly to global supply concerns stemming from severe rains in the Australian state of Queensland, which are causing more and more companies to declare force majeure on sales contracts.
Thursday saw Anglo American join BHP Billiton-Mitsubishi Alliance and Rio Tinto in invoking the legal clause on coal deliveries. QR National closed the Goonyella rail system December 24 due to a derailment and flooding.
Meanwhile, a coal train derailment Thursday on the line into the Richards Bay South terminal in South Africa only added to the supply concerns. At least 70 trains, representing 500,000 mt of coal, are already backed up due to the derailment.
With traders predicting a steady creep upward in Atlantic thermal coal prices and keeping a close eye on developments in both South Africa and Australia, Platts assessed the daily 90-day CIF ARA price at $131/mt, up $1/mt; FOB barge (ARA) at $133.50/mt, up $1/mt; FOB Richards Bay at $128/mt, up $1/mt; and FOB Newcastle unchanged at $130/mt.
CAPP rail (CSX) and barge (OTC) prices were also boosted to some extent by a late rally in the front-month NYMEX natural gas futures contract, which closed 5.1 cents higher at $4.338/MMBtu, as traders squared their books ahead of the new year. The late rally came despite bearish storage data released by the US Energy Information Administration, which reported a draw of 136 Bcf, less than the expected draw of 145 Bcf to 149 Bcf.
Q2 2011 CAPP barge (OTC) coal trading for five barges at $77.90/st was the only trade reported on Thursday for this sector.
In the CAPP rail (CSX) market, one train of January traded at $74/st, up $2.25/st from Wednesday's trade at $71.75/st. Also, a February-March strip for one train each of CAPP rail (CSX) coal traded at $74/st. On Wednesday, Platts assessed February at $72/st and March at $72.75/st.
--Amena Saiyid
