US over-the-counter coal markets saw a flurry of activity on Tuesday, with turnover in rail products picking up sharply. Prices moved erratically, with NYMEX look-alike terms pressing lower across the curve, while Eastern and Western railed coals finished the session mixed.
Look-alike markets opened lower, trading below Monday's Platts assessments before posting a modest price recovery into the end of the session, according to market sources. Q1 2011 look-alike traded at $66.50/st early in the day, a full 50 cents below the prior-session Platts assessment.
Eastern rail products saw increased trader attention as Norfolk Southern 12,500-Btu/lb, 1% physical coal traded within the December 2010 contract. CSX 12,500-Btu/lb, -1% transactions were confined to the swaps market. Lower pricing in CSX paper trades shifted the physical curve down in the long end, while the front end held mostly unchanged.
Western rail market volume accelerated rapidly. Powder River Basin 8,800-Btu/lb physical coal traded in the January 2011 term at $13.10/st, 5 cents higher than the prior Platts assessment. Physical PRB 8,400 contracts returned to action, with traders focusing attention on ex-Coal Creek products.
In look-alike coal markets, Q1 2011 traded at $66.50/st, $66.60/st and $66.75/st, each for five barges. The contract traded in a spread over Q4 2011 at a discount of $4.75/st for 10 barges. Platts assessed the contract at $67/st on Monday.
Q2 traded at $68/st for five barges twice, $68.25/st for five barges and $68.40/st for five barges. All trades were below the prior Platts assessment of $68.60/st on Monday.
First-half 2011 traded in a spread over second-half 2011 at a discount of $3.20/st for five barges.
In longer-dated look-alike trades, Q3 traded once at $70/st for five barges, while Q4 traded once at $71/st for five barges.
Eastern rail saw NS 1% trade in the physical December 2010 contract twice, at $63.75/st and $63.50/st, each for the delivery of one train.
CSX swaps traded in Cal 2011 outright at $70.25/st for 5,000 st twice, and in a spread over Cal 2012 at a discount of $7/st for 5,000 st.
In the Western market, PRB 8,800 physical traded in the January 2011 term at $13.10/st and $12.75/st for the delivery of one train each. The January contract last traded on November 16 at $13.45/st. PRB 8,800 financial also traded in the January contract, at $13/st and $13.20/st for 5,000 st each.
PRB 8,400 ex-Coal Creek traded outright in the Q1 2011 contract at $10.90/st for the delivery of one train/month. Cal 2011 ex-Coal Creek traded in a spread over PRB 8,400 generic at a premium of 25 cents.
Look-alike markets opened lower, trading below Monday's Platts assessments before posting a modest price recovery into the end of the session, according to market sources. Q1 2011 look-alike traded at $66.50/st early in the day, a full 50 cents below the prior-session Platts assessment.
Eastern rail products saw increased trader attention as Norfolk Southern 12,500-Btu/lb, 1% physical coal traded within the December 2010 contract. CSX 12,500-Btu/lb, -1% transactions were confined to the swaps market. Lower pricing in CSX paper trades shifted the physical curve down in the long end, while the front end held mostly unchanged.
Western rail market volume accelerated rapidly. Powder River Basin 8,800-Btu/lb physical coal traded in the January 2011 term at $13.10/st, 5 cents higher than the prior Platts assessment. Physical PRB 8,400 contracts returned to action, with traders focusing attention on ex-Coal Creek products.
In look-alike coal markets, Q1 2011 traded at $66.50/st, $66.60/st and $66.75/st, each for five barges. The contract traded in a spread over Q4 2011 at a discount of $4.75/st for 10 barges. Platts assessed the contract at $67/st on Monday.
Q2 traded at $68/st for five barges twice, $68.25/st for five barges and $68.40/st for five barges. All trades were below the prior Platts assessment of $68.60/st on Monday.
First-half 2011 traded in a spread over second-half 2011 at a discount of $3.20/st for five barges.
In longer-dated look-alike trades, Q3 traded once at $70/st for five barges, while Q4 traded once at $71/st for five barges.
Eastern rail saw NS 1% trade in the physical December 2010 contract twice, at $63.75/st and $63.50/st, each for the delivery of one train.
CSX swaps traded in Cal 2011 outright at $70.25/st for 5,000 st twice, and in a spread over Cal 2012 at a discount of $7/st for 5,000 st.
In the Western market, PRB 8,800 physical traded in the January 2011 term at $13.10/st and $12.75/st for the delivery of one train each. The January contract last traded on November 16 at $13.45/st. PRB 8,800 financial also traded in the January contract, at $13/st and $13.20/st for 5,000 st each.
PRB 8,400 ex-Coal Creek traded outright in the Q1 2011 contract at $10.90/st for the delivery of one train/month. Cal 2011 ex-Coal Creek traded in a spread over PRB 8,400 generic at a premium of 25 cents.
