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

Contracts

Aussie Tug Engineers take Deal, Cancel Strike

Tug engineers withdrew plans to strike at Port Hedland, Australia's biggest iron ore port, tug operator Teekay Shipping said on Thursday, removing a threat to exports

MoA for APM Terminals in Ghana Port Deal

Port operator APM Terminals, a unit of shipping and oil conglomerate A.P. Moller-Maersk , said on Thursday it had signed a memorandum of understanding with the

Lynden to Provide Barge Service for Tulsequah Mine Project

Lynden Logistics, LLC signed a letter of intent with Chieftain Metals Corp. to provide barge services in support of the construction and production of the Tulsequah Mine in British Columbia.

Bulk Carrier Trends

Ice to Close Upper Mississippi from Nov. 20

The shipping season on the upper Mississippi River will end on Thursday as ice surrounding locks and dams near Minnesota's Twin Cities forced the earliest winter

Mombasa's 2014 Port Cargo to Soar 14 pct

East Africa's biggest port, Mombasa, expects to handle at least 14 percent more cargo this year, helped by its expanded capacity and a marketing drive, its management said on Thursday.

Great Lakes Coal Up 9% in October

Shipments from Lake Erie nearly double that of a year ago Coal shipments on the Great Lakes topped 3 million tons in October, an increase of 9 percent compared to a year ago,

Environmental

Maritime Reporter @ 75: The Daily Cartoon

Maritime Reporter & Engineering News was founded by John J. O'Malley (1905-1980) in 1939, and today ranks as the world's largest audited trade publication in the world serving the maritime industry,

Shell Launches Naturelle Stern Tube Fluid

Shell has launched its new range of Environmentally Acceptable Lubricants (EALs), including Shell Naturelle S4 Stern Tube Fluid 100.   The Shell Naturelle range

Energy Storage System Ordered for LNG Battery Hybrid Ferry

Norwegian hybrid to be the first LNG battery ferry to operate on commercial routes Corvus Energy, Siemens AS and Fjord1 have announced the award of the contract for the Fannefjord LNG hybrid ferry.

Energy

BSEE Responds to Explosion in Gulf of Mexico

The Bureau of Safety and Environmental Enforcement (BSEE) is responding to an explosion at West Delta 105 in the Gulf of Mexico, approximately 12 miles off the coast of New Orleans.

Panama Canal Delegates Meet with Japanese Customers

A Panama Canal delegation headed by Administrator Jorge L. Quijano visited Japan to hold discussions with the Japan Shipowners’ Association (JSA) and the major Japanese shipping lines,

Russian Firms Face Huge Insurance Costs as Foreign Providers Flee

Russian companies face billions of dollars in extra insurance costs as Western sanctions prompt foreign insurance firms to start pulling out, worried that any business

 
 
Maritime Careers / Shipboard Positions Naval Architecture Navigation Offshore Oil Pipelines Salvage Ship Repair Ship Simulators Sonar 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: 0.1372 sec (7 req/sec)