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.
"The Drummond situation was already priced in and there is not much incentive to sell at a lower price from the Russians, U.S. and Colombians," one coal analyst said.
China said on Friday it will close 1,725 small-scale mines with a total capacity of 117.48 million metric tons in 2014 as part of its program to phase out low-quality coal production.
Smog-hit China is keen to reduce coal consumption, a major source of pollutants, including hazardous airborne particulate matter in the country's cities.
(Reporting by Nina Chestney; Editing by Louise Ireland)