Over-the-counter coal prices rose across product class and geography on Wednesday, led by sizeable gains in the NYMEX look-alike market.
Look-alike prices have pushed upwards throughout the week, trading as high as $72.25/st for front-month January contract Wednesday, $4.35/st higher than levels seen at the close of the prior week.
Traders said the gains were focused on the near-term products, while longer-term contract prices have seen less substantial uplift. In 2011 contracts, the front-end price surge has narrowed quarterly spreads in, with Q1 2011 look-alike now trading at a discount of just 15 cents to Q2 2011.
OTC coal prices benefited from increased turnover in "beginning of the month" trading, according to one source. Additional contributors to Wednesday's strong gains included forecasts for seasonal temperatures across much of the US, along with snowstorms in northern Europe that forced European coal and electricity prices higher.
January look-alike traded once at $72.75/st for five barges. The trade was $2.05/st higher than Tuesday's Platts assessment and represented the first reported interest in the term. Q1 2011 traded outright at $72/st for five barges, $72.50/st for 10 barges and then at $72.50/st for five barges. The Tuesday Platts assessment was $70.80/st.
Q1 traded in a range of spread deals, over Q2 2011 at a discount of 50 cents/st, 40 cents/st, 30 cents/st, 25 cents/st, and 15 cents/st, all for five barges once, except for 30 cents/st which traded for five barges twice. The prior implied Platts spread stood at 95 cents/st. Q1 also traded in a spread deal over Q3 2011 at a discount of $1/st for five barges and over Q4 2011 at a discount of $1.80/st for five barges. Like Q1, Q2 2011 traded for volume in spread trades, the contract traded over Q3 2011 at a discount for $1.50/st and $1.05/st for five barges, at a discount of 90 cents/st for five barges twice, a discount of 75 cents/st for five barges twice and 10 barges.
The same spread also traded at a discount of 65 cents/st for five barges and 60 cents/st for 10 barges. Q2 traded outright at $72.75/st for five barges, $1/st above Tuesday's Platts assessment. The prior implied Q2 over Q3 Platts spread stood at a discount of $1.05/st.
Second-half 2011 look-alike trading remained strong. Q3 traded outright at $73.50/st for 10 barges twice, for five barges and for 20 barges. Platts assessed the term at $72.80/st on Tuesday.
Q4 2011 traded at $74.50/st and $74.65/st for five barges each, while full year Cal 2011 traded at $73.15/st for five barges. Cal 2011 traded in a spread over Cal 2012 at a discount of $4.10/st for five barges, while Cal 2012 traded once outright at $78/st for five barges.
In the Eastern rail market, front-months were active. December CSX physical traded at $69.50/st for the delivery of two trains/month, and for one train/month. January traded at $70.25/st and $70.50/st, each for the delivery of one train/month.
Western rail volumes remained light, but Powder River Basin financial trades supported physical prices, with PRB financial trading once at $13.30/st for 15,000 st in the January-February 2011 term.
Look-alike prices have pushed upwards throughout the week, trading as high as $72.25/st for front-month January contract Wednesday, $4.35/st higher than levels seen at the close of the prior week.
Traders said the gains were focused on the near-term products, while longer-term contract prices have seen less substantial uplift. In 2011 contracts, the front-end price surge has narrowed quarterly spreads in, with Q1 2011 look-alike now trading at a discount of just 15 cents to Q2 2011.
OTC coal prices benefited from increased turnover in "beginning of the month" trading, according to one source. Additional contributors to Wednesday's strong gains included forecasts for seasonal temperatures across much of the US, along with snowstorms in northern Europe that forced European coal and electricity prices higher.
January look-alike traded once at $72.75/st for five barges. The trade was $2.05/st higher than Tuesday's Platts assessment and represented the first reported interest in the term. Q1 2011 traded outright at $72/st for five barges, $72.50/st for 10 barges and then at $72.50/st for five barges. The Tuesday Platts assessment was $70.80/st.
Q1 traded in a range of spread deals, over Q2 2011 at a discount of 50 cents/st, 40 cents/st, 30 cents/st, 25 cents/st, and 15 cents/st, all for five barges once, except for 30 cents/st which traded for five barges twice. The prior implied Platts spread stood at 95 cents/st. Q1 also traded in a spread deal over Q3 2011 at a discount of $1/st for five barges and over Q4 2011 at a discount of $1.80/st for five barges. Like Q1, Q2 2011 traded for volume in spread trades, the contract traded over Q3 2011 at a discount for $1.50/st and $1.05/st for five barges, at a discount of 90 cents/st for five barges twice, a discount of 75 cents/st for five barges twice and 10 barges.
The same spread also traded at a discount of 65 cents/st for five barges and 60 cents/st for 10 barges. Q2 traded outright at $72.75/st for five barges, $1/st above Tuesday's Platts assessment. The prior implied Q2 over Q3 Platts spread stood at a discount of $1.05/st.
Second-half 2011 look-alike trading remained strong. Q3 traded outright at $73.50/st for 10 barges twice, for five barges and for 20 barges. Platts assessed the term at $72.80/st on Tuesday.
Q4 2011 traded at $74.50/st and $74.65/st for five barges each, while full year Cal 2011 traded at $73.15/st for five barges. Cal 2011 traded in a spread over Cal 2012 at a discount of $4.10/st for five barges, while Cal 2012 traded once outright at $78/st for five barges.
In the Eastern rail market, front-months were active. December CSX physical traded at $69.50/st for the delivery of two trains/month, and for one train/month. January traded at $70.25/st and $70.50/st, each for the delivery of one train/month.
Western rail volumes remained light, but Powder River Basin financial trades supported physical prices, with PRB financial trading once at $13.30/st for 15,000 st in the January-February 2011 term.
