Coal Prices Lower on Sluggish Demand
European physical coal prices were lower on Monday afternoon on sluggish demand and as continuing over-supply weighed on prices. Cargoes for delivery in May to the ports of Amsterdam, Rotterdam and Antwerp (ARA) were valued at around $73.20 a tonne, almost $4 lower than the previous settlement on Friday. ARA coal for June delivery was valued around $75.65 a tonne, slightly below its previous settlement on March 25 of $76.00. "Buying has been patchy of late - there isn't much demand," one coal trader said. The API2 2015 coal futures contract saw bids of $79.65 a tonne, below Friday's settlement price of $79.91. Analysts said the market was eyeing a psychological support level of $80 a tonne but there were no clear drivers which would push prices up.
Euro Coal Prices Rise after Pause in Trading
European physical coal prices for May were slightly higher on Friday afternoon in the first trade since Monday as traders said coal prices had probably reached a floor. Cargos for delivery in May to the ports of Amsterdam, Rotterdam and Antwerp (ARA) were trading at $77.30 a metric ton, up $0.25 from the previous settlement on volume of 50 lots. The API2 2015 coal futures contract was valued at just over $80 a metric ton. European energy prices have dropped to multiyear lows as a result of a mild winter and supply glut but coal might have bottomed out. U.S. coal miner Drummond Inc. resumed exports of coal from Colombia this week after they stopped in January due to environmental legislation.
