Shrugging off uncertainty in the rest of the energy complex, Central Appalachian rail- and barge-delivered coal prices marched higher Wednesday, despite activity being limited to the CAPP barge prompt quarter, where prices rose at least $1.50/st.
In at least two reported trades for CAPP barge coal, Q2 2011 traded $1.50 higher than Tuesday's Platts assessment of $76.50/st. Its gains pushed up the rest of the forward curve because it was also involved in spread trades with Q3 2011 and CY 2012.
And in the only reported trade for CAPP rail (CSX) coal, January traded at $71.75/st, which in turn pushed up the prices on that market's forward curve.
The Powder River Basin 8,800 Btu/lb coal market remained shut out though the bid-offer activity continued for February.
Sources said the US OTC coal markets took their cue from the European physical coal markets, which moved $2/mt higher to $130/mt on account of global supply restrictions brought on by severe rains in Queensland in Australia.
Weather concerns are hurting rail and barge shipments of coal, making them scarce and thereby pushing prices higher.
Unlike the bullish influence of global supply, the natural gas and crude oil markets, unlike Tuesday, were soft on Wednesday.
"People are looking at Australia, not at the natural gas markets," a market source noted.
Q2 2011 CAPP barge (OTC) coal traded for five barges each at $78.15/st initially and then at $78/st. It then traded for 10 barges at a $2/st discount to Q3 2011. And finally, Q2-Q3 2011 traded at a discount to CY 2012 for $4/st for 15 barges.
--Amena Saiyid
In at least two reported trades for CAPP barge coal, Q2 2011 traded $1.50 higher than Tuesday's Platts assessment of $76.50/st. Its gains pushed up the rest of the forward curve because it was also involved in spread trades with Q3 2011 and CY 2012.
And in the only reported trade for CAPP rail (CSX) coal, January traded at $71.75/st, which in turn pushed up the prices on that market's forward curve.
The Powder River Basin 8,800 Btu/lb coal market remained shut out though the bid-offer activity continued for February.
Sources said the US OTC coal markets took their cue from the European physical coal markets, which moved $2/mt higher to $130/mt on account of global supply restrictions brought on by severe rains in Queensland in Australia.
Weather concerns are hurting rail and barge shipments of coal, making them scarce and thereby pushing prices higher.
Unlike the bullish influence of global supply, the natural gas and crude oil markets, unlike Tuesday, were soft on Wednesday.
"People are looking at Australia, not at the natural gas markets," a market source noted.
Q2 2011 CAPP barge (OTC) coal traded for five barges each at $78.15/st initially and then at $78/st. It then traded for 10 barges at a $2/st discount to Q3 2011. And finally, Q2-Q3 2011 traded at a discount to CY 2012 for $4/st for 15 barges.
--Amena Saiyid
