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 August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

China Passes New Pollution Law, Will Cap Coal Consumption

Legislators have approved amendments to China's 15-year-old air pollution law that grant the state new powers to punish offenders and create a legal framework to cap coal consumption,

Gazprom, OMV Meet on Establishing Nord Stream JV

At a Meeting held at the Gazprom headquarters between Alexey Miller, Chairman of the Company's Management Committee and Rainer Seele, Chairman of the Executive Board of OMV,

DP World Profit Up 22%

Global marine terminal operator DP World today announced strong financial results from its global portfolio of marine terminals for the six months to 30 June 2015,

Bulk Carrier Trends

MES Delivers Bulk Carrier STH Athens

Mitsui Engineering & Shipbuilding Co., Ltd. (MES) completed and delivered a 60,000 dwt type bulk carrier M.V. STH Athens (MES Hull No. 1898) at its Chiba Works on August 27,

Break Bulk in Rotterdam on the Way Up

The opening of a new break bulk terminal is one of the many developments and investments in the break bulk sector in the port of Rotterdam; a sector that has

Collaboration Helps Save 2 from Sinking Yacht

The U.S. Coast Guard, the Alpena Sheriff's Department and several good Samaritans are assisting two men aboard a 42-foot sailboat that began taking on water early

Environmental

China Passes New Pollution Law, Will Cap Coal Consumption

Legislators have approved amendments to China's 15-year-old air pollution law that grant the state new powers to punish offenders and create a legal framework to cap coal consumption,

Marad Celebrates Deployment of Maritime Fuel Cell Project

The U.S. Department of Transportation’s Maritime Administration (MARAD) today celebrated the launch of field trials for the first prototype hydrogen fuel cell

Panama Canal Suspends Draft Restriction

The Panama Canal Authority (ACP) has lifted scheduled vessel draft restrictions brought on by lingering draught conditions in the region.   The ACP had previously set restrictions of 11.

Energy

China Passes New Pollution Law, Will Cap Coal Consumption

Legislators have approved amendments to China's 15-year-old air pollution law that grant the state new powers to punish offenders and create a legal framework to cap coal consumption,

Marad Celebrates Deployment of Maritime Fuel Cell Project

The U.S. Department of Transportation’s Maritime Administration (MARAD) today celebrated the launch of field trials for the first prototype hydrogen fuel cell

Gazprom, OMV Meet on Establishing Nord Stream JV

At a Meeting held at the Gazprom headquarters between Alexey Miller, Chairman of the Company's Management Committee and Rainer Seele, Chairman of the Executive Board of OMV,

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Repair Winch
rss | archive | history | articles | privacy | 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: 0.1262 sec (8 req/sec)