Mild Weather in Europe Hurts Coal Prices
by Henning Gloystein, Reuters
European physical coal prices on Monday dropped to their lowest level since last summer as mild weather pulled down demand.
Cargos for delivery in March to the ports of Amsterdam, Rotterdam and Antwerp (ARA) were valued around $73.50 per metric ton on Monday, down $0.8 since Friday and to their lowest level since early July 2013.
Traders said the price drop was a result of low demand and healthy supplies.
"Our stocks are full, and the weather outlook suggests that the mild winter will go directly into a mild spring. At the same time we're looking at improved supply availability from Colombia from April," said one coal trader with a utility.
Meteorologists expect an early spring to continue to bring warmer-than-usual conditions over most of Europe, implying sustained weak energy demand.
The weak physical prices also fed into the futures market, where API2 2015 swaps contracts traded at $80.60 a tonne, over 40 percent lower than their most recent peak of over $140 a tonne in 2011.
(Editing by David Evans, Reuters)