Low Demand Spurs Euro Coal Price Drop

Posted by Michelle Howard
Monday, May 12, 2014

European physical coal prices dropped on Monday as demand across the region fell on the back of mild weather and healthy stocks.

Cargos for delivery in July to Amsterdam, Rotterdam and Antwerp (ARA) were trading at $77.50 a metric ton, down around half a dollar since their last settlement, and cargos for delivery this month from South Africa's Richards Bay terminal fell $0.7 to $77.50 a metric ton.

Traders said the lower prices were a result of weakening European demand.

"Winter was mild, and so has spring so far. Coal stocks are high so utilities are burning down their reserves before placing new orders," said one coal trader.

Standard Bank said in a research note published last week that Europe's thermal coal market was well supplied. "Coal supplies to Europe will increase as Drummond (in Colombia) ramps up capacity (and) other Colombian suppliers are also increasing shipment rates, leading to an improving 6-10 million metirc ton run-rate from Colombian miners across Q2," it added.

In the futures market, API2 2015 coal swaps contracts were trading at $82.50 a metric ton, in-line with a price range in which the contract has traded since the beginning of the month.

"Coal futures as well as German power futures are both very rangebound at the moment and either would require a shift in fundamentals, such as major fuel supply interruptions or big economic events to move them up or down a lot," one futures trader said.

(Reporting by Henning Gloystein, editing by David Evans)

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

GAC Starts Green Hull Cleaning Operations in Oman

Oman’s Ministry of Environment and Climate Affairs has granted GAC EnvironHull permission to conduct underwater hull cleaning operations using the brush-and-diver-free

Teekay Renews Hull and Propeller Monitoring for LNG Carriers

Canada-based shipping company Teekay Corporation has renewed its contract with Propulsion Dynamics for its hull and propeller performance monitoring system CASPER Service.

NAO Announces Financials, Declares Dividend

Nordic American Offshore Ltd. has declared a dividend of $0.45 per share for 3Q2014, as previously announced. This is the same dividend as for the previous two quarters.

Bulk Carrier Trends

Bulker Arrives to US on Her Maiden Voyage

The Port of Vancouver USA welcomed the Kypros Unity, commanded by Capt. Wilfredo F. Itable of Cyprus, on her maiden voyage Oct. 28. Capt. Itable and his 20-member

Vale CEO: Coal Deal Soon

Brazilian mining company Vale SA is close to making a "strategic" announcement concerning its coal unit, the company's chief executive Murilio Ferreira said on

Vale Financials Disappoint; Iron Ore Prices, Currency Cited

Brazil's Vale posted a surprise loss of $1.44 billion on Thursday, hurt by a fall in the price of iron ore, higher production costs and a weakening Brazilian currency.

Environmental

GAC Starts Green Hull Cleaning Operations in Oman

Oman’s Ministry of Environment and Climate Affairs has granted GAC EnvironHull permission to conduct underwater hull cleaning operations using the brush-and-diver-free

Fukushima Experimental Offshore Floating Wind Farm Project Update

A consortium comprised of Marubeni (project integrator), the University of Tokyo (technical advisor), Mitsubishi, Mitsubishi Heavy Industries, Japan Marine United,

Wärtsilä Propulsion Equipment for 2 Fishing Vessels

Two new 78 metre purser/trawler fishing vessels being designed and built at Karstensen Shipyard in Denmark will feature Wärtsilä's main propulsion and control equipment.

Energy

Ensco plc Reports 3Q, 2014 Results

Ensco plc  today reported earnings per share from continuing operations of $1.93 in third quarter 2014, up 16% from $1.66 in third quarter 2013. Adjusted for a $0.

Fukushima Experimental Offshore Floating Wind Farm Project Update

A consortium comprised of Marubeni (project integrator), the University of Tokyo (technical advisor), Mitsubishi, Mitsubishi Heavy Industries, Japan Marine United,

Wärtsilä Propulsion Equipment for 2 Fishing Vessels

Two new 78 metre purser/trawler fishing vessels being designed and built at Karstensen Shipyard in Denmark will feature Wärtsilä's main propulsion and control equipment.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Ship Repair Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2936 sec (3 req/sec)