Coal Trader Intl

Volume 13 / Issue 213 / Thursday, October 31, 2013
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COAL TRADER INTERNATIONAL
[COAL ]
INCORPORATING INTERNATIONAL COAL REPORT
Inside this issue
Taipower awards 750,000 mt sub-bituminous Panamax contracts 2
Kowepo seeks 1.4 million mt
in five-year sub-bituminous coal tender 3
Panamax coal freight rates edge down on key Pacific routes 4
Asian met coal prices static as bids and offers keep distance 7
Macquarie forecasts gloomy coal price outlook in China 8
Platts Physical Thermal Coal Assessments, October 31
CV (kcal/kg) Basis $/mt Chg Yuan/mt Chg
Daily Prompt Prices
CFR South China 5,500 NAR 78.75 0.55 483.72 3.48
FOB Qinhuangdao 5,500 NAR 74.07 -0.02 455.00 0.00
FOB Newcastle 5,500 NAR 64.60 0.00
Ash Differential (net value)* 0.56
FOB Newcastle 6,300 GAR 83.30 0.80
FOB Kalimantan 4,200 GAR 38.50 0.00
FOB Kalimantan 3,800 GAR 32.70 -0.20
CFR India West 4,200 GAR 52.60 0.00
CFR India East 4,200 GAR 51.25 0.00
CIF ARA 6,000 NAR 85.60 -1.30
FOB Richards Bay 6,000 NAR 83.70 -0.90
FOB Richards Bay 5,500 NAR 64.60 0.00
*Per 1% Ash (air dried)
Daily 90-Day Prices
CIF ARA 6,000 NAR 84.75 -1.45
FOB Richards Bay 6,000 NAR 84.50 -1.25
FOB Newcastle 6,300 GAR 84.05 0.45
FOB ARA Barge 6,000 NAR 87.25 -1.45
CFR India West 6,300 GAR 102.25 -0.50
CFR India West 5,900 GAR 80.95 -0.30
CFR India East 6,300 GAR 102.55 -0.50
CFR India East 5,900 GAR 79.40 -0.30
Weekly 90-day Prices (October 25)
FOB Barge ARA ^ 6,000 NAR 90.16 4.91
FOB Colombia 6,000 NAR 76.00 8.35
FOB Bolivar 6,450 GAR 78.00 8.00
Poland Baltic 6,300 GAR 82.50 4.50
Russian Baltic 6,400 GAR 83.00 4.50
FOB Gladstone 6,500 GAR 87.25 4.00
FOB Qinhuangdao 6,200 GAR 93.75 2.50
Russia Pacific 6,300 GAR 88.50 1.50
CIF Japan 6,080 NAR 99.75 2.00
CIF Korea West 6,080 NAR 93.50 1.50
^ Weekly average
China Coal Index Physical Coal Benchmark Prices, October 31
CV (kcal/kg) Basis $/mt Chg Yuan/mt Chg
CCI 1 (FOB Qinhuangdao) 5,500 NAR 87.75 0.63 539.00* 4.00
CCI 8 (CFR South China) 5,500 NAR 78.50 0.20 482.19 1.33
*includes VAT at 17%
Daily Coal Price Trends (Physical)
($/mt)
60
65
70
75
80
85
90
31-Oct 18-Oct 07-Oct 24-Sep 11-Sep 29-Aug 15-Aug 02-Aug
Kalimantan
Richards Bay
Newcastle 6300
Newcastle 5500
CIF ARA
Perth, ManilaCheaper vessel freight has started to pull prices
lower in the CFR South China market, but their rate of descent is
being slowed to some extent by rising prices for domestic
thermal coal at Qinhuangdao port, said market sources Thursday.
Transactions were heard in the China spot market
Thursday for Australian 5,500 kcal/kg NAR Capesize cargoes
for arrival in the next one to two months at around $78.50/
mt CFR South China, and down by around 50 cents since the
start of the week.
A Panamax cargo of 5,500 kcal/kg NAR Australian thermal
was also heard to trade at $78.75/mt CFR South China and
was for December delivery, and, a Guangdong-based trader
China seaborne thermal coal
cargo prices slip on weaker freight
(continued on page 9)
LondonEuropean-delivered CIF ARA physical thermal coal
spot prices took another step back Thursday, losing more than
$1 with trading sources citing a lack of liquidity, dispersing
market tightness and the belief that South African cargoes were
set to start flooding the Amsterdam-Rotterdam-Antwerp market.
Platts assessed the price of CIF ARA thermal coal basis
6,000 kcal/kg NAR and for delivery within the next 15-60
days at $85.60/mt, down $1.30 on-day.
DES ARA spot prices have now lost $4.40/mt over five
straight days, almost eradicating the $6.50/mt climb during
its seven-day bull-run that peaked at $90/mt a week ago.
One northwest European utility source noted that the
CIF ARA spot prices fall over $1
as oversupply picture builds again
(continued on page 10)
2
Copyright 2013 McGraw Hill Financial
THURSDAY, OCTOBER 31, 2013
Platts Forward Curve Coal, October 31
Bid Ask Midpoint* Change*
CIF ARA
Nov 13 83.25 83.55 83.40 -2.40
Dec 13 81.25 81.55 81.40 -2.55
Q1 2014 80.60 80.90 80.75 -1.75
Q2 2014 80.60 80.90 80.75 -0.95
Q3 2014 82.35 82.65 82.50 -0.55
Q4 2014 84.25 84.55 84.40 -0.15
2014 81.95 82.25 82.10 -0.85
2015 87.65 87.95 87.80 -0.35
2016 91.65 91.95 91.80 -0.35
FOB Richards Bay
Nov 13 85.95 86.25 86.10 -0.70
Dec 13 85.55 85.85 85.70 -1.05
Q1 2014 84.15 84.45 84.30 -1.35
Q2 2014 81.40 81.70 81.55 -0.80
Q3 2014 80.75 81.05 80.90 -0.45
Q4 2014 81.15 81.45 81.30 -0.55
2014 81.85 82.15 82.00 -0.80
2015 84.40 84.70 84.55 -0.40
2016 87.30 87.60 87.45 -0.45
FOB Newcastle
Nov 13 84.15 84.65 84.40 -0.10
Dec 13 84.75 85.25 85.00 -0.35
Q1 2014 85.30 85.80 85.55 -0.20
Q2 2014 83.40 83.90 83.65 -0.35
Q3 2014 82.75 83.25 83.00 -0.25
Q4 2014 83.35 83.85 83.60 -0.15
2014 83.45 84.45 83.95 -0.25
2015 85.20 86.20 85.70 -0.30
2016 87.45 88.45 87.95 -0.35
* fields are calculated
Platts Forward Curve Coal
Graph created using Platts Forward Curve Coal data.
The forward curve in coal will provide nine assessments comprising two prompt
months, four prompt quarters and three calendar years.
PFCCoal is also available in computer-readable Platts Dispatch format. To see a
sample and fnd information on how to subscribe go to www.risk.platts.com. For
questions about subscribing, please contact support@platts.com. For questions
about the content of PFCCoal, please e-mail coal@platts.com.
($/mt)
80
85
90
95
2016 2015 2014 Q4-14 Q3-14 Q2-14 Q1-14 Dec-13 Nov-13
FOB Richards Bay
FOB Newcastle
CIF ARA
Taipower awards 750,000 mt
sub-bituminous Panamax contracts
ManilaState utility Taiwan Power has awarded ten
75,000 mt Panamax contracts of Indonesian sub-bituminous
coal for February-May 2014 delivery.
In tender, TPC10302-GS, Taipower originally sought
1.05 million mt sub-bituminous thermal coal via 14
Panamax vessels. It received offers for 3.07 million mt or
41 Panamax shipments.
Taipower awarded four Panamax contracts to Energy
Man, two each to Advance Trading and Vitol, and one each
to Universe Marine and Right Link.
The winning evaluated C&F prices were $91.99-$95/mt,
basis 6,322 kcal/kg gross-as-received
Taipower solicited offers for material with the following
specifications: minimum calorific value of 5,000 kcal/kg gross
as received, maximum 28% total moisture as received,
maximum 15% ash air dried, maximum 1.1% sulfur air dried
and minimum 28% volatile matter air dried.
In a previous tender for sub-bituminous coal, TPC10301-
GS, Taipower bought 12 Panamax spot shipments of
Indonesian coal at evaluated C&F prices of $93.98-95.39/mt
for December 2013-March 2014 delivery.
Cecilia Quiambao
Nearby CIF ARA swaps pulled
$2 lower on-day to fresh lows
LondonFront-end European-delivered CIF ARA thermal
coal derivatives fell around $2 on-day Thursday extending a
five-day price drop, sources said.
Platts assessed the front-month API2 November contract
at $83.40/mt, down $2.40 on the day and the front-quarter
Q1-14 at $80.75/mt, $1.75 lower from Wednesday.
A producer source said that there is currently no support
for the front-end of the CIF ARA curve, as the market is
experiencing a price correction after nearby CIF ARA
contracts rose to their highest levels since January last week.
Since Friday, participants have been opting to take in
profits and have switched to the sell-side after utilities were on
the buy-side of the front of the curve in order to cover shorts.
CIF ARA November prices have fallen $5.50 in a week and
Q1-14 prices have dropped almost $6 in the same period,
according to Platts data.
The producer source said that as a result, time spreads
have continued to contract, accentuating the differential
between Q1-14 and Cal-14 from minus $0.45/mt Wednesday
to minus $1.35/mt Thursday.
This compares to the spread turning to positive values
for the first time in recent record between October 21-28,
before returning to contango once the bears took hold of
the market again.
3
Platts Daily Metallurgical Coal Assessments, October 31
Asia-Pacific Coking Coal ($/mt)
FOB CFR CFR Change
Australia China India Australia China India
HCC Peak Downs Region 147.25 162.25 164.25 0.00 0.00 -0.50
Premium Low Vol 145.50 160.50 162.50 0.00 0.00 -0.50
HCC 64 Mid Vol 130.00 145.00 147.00 0.00 0.00 -0.50
Low Vol PCI 113.50 128.50 130.50 0.00 0.00 -0.50
Low Vol 12 Ash PCI 105.00 120.00 122.00 -1.00 -1.00 -1.50
Semi Soft 96.50 111.50 113.50 0.00 0.00 -0.50
Met Coke - - 272.00 - - 0.00
North China Prompt Port Stock Prices
Ex-stock Jingtang CFR Jingtang
(Yuan/mt, incl VAT) equivalent ($/mt)**
Premium Low Vol* 1140.00 153.97
HCC 64 Mid Vol* 1060.00 142.82
*weekly (assessed October 25), 20-day delivery from date.
**ex-stock price, net of VAT and port charges.
Atlantic Coking Coal ($/mt)
FOB US
East Coast Change VM Ash S
Low Vol HCC 134.500 0.000 19% 8% 0.80%
High Vol A 127.500 0.000 32% 7% 0.85%
High Vol B 119.000 0.000 34% 8% 0.95%
Detailed methodology and specifications are found here: http://platts.com/IM.Platts.
Content/MethodologyReferences/MethodologySpecs/metcoalmethod.pdf
HCC Assessed Specifications
CSR VM Ash S P TM Fluidity
Premium Low Vol 71% 21.5% 9.3% 0.50% 0.045% 9.7% 500
HCC Peak Downs Region 74% 20.7% 10.5% 0.60% 0.030% 9.5% 400
HCC 64 Mid Vol 64% 25.5% 9.0% 0.60% 0.050% 9.5% 1,700
Penalties & Premia: Differentials ($/mt)
Within % of Premium Low Vol FOB Net Value
Min-Max Australia assessment price ($/mt)
Per 1% CSR 60-71% 0.50% 0.73
Per 1% VM (air dried) 18-27% 0.50% 0.73
Per 1% TM (as received) 8-11% 1.00% 1.46
Per 1% Ash (air dried) 7-10.5% 1.25% 1.82
Per 0.1%S (air dried) 0.3-1% 1.00% 1.46
The assessed price of HCC Peak Downs originates with Platts and is based on price
information for a range of HCCs with a CSR> 67% normalized to the standard of HCC
Peak Downs (CSR 74%). Peak Downs is a registered trade mark of BM Alliance Coal
Operations Pty Limited BMA. This price assessment is not affiliated with or sponsored
by BMA in any way.
Back-end CIF ARA swaps fell by less than a dollar, with
sources noting that they were being pulled down by the
front-end of the curve rather than following any other
factors.
Platts assessed the API2 Cal-14 contract at $82.10/mt, 85
cents down from Wednesday, $2.70 down on-week and at
over two-week lows.
German baseload power Cal-14 contracts shed 10 euro
cents to 37.55/MWh, and December 2014 EUA carbon
allowances fell 17 euro cents to 4.96/mt.
The South African Richards Bay FOB market moved lower
Thursday alongside European coal derivatives, with the
implied freight differential falling slightly on the day.
The negative front-quarter Q1-14 implied freight
differential widened 40 cents to minus $3.55/mt, while the
Cal-14 shed 5 cents to $0.10/mt.
Platts assessed the API4 Q1-14 contract at $84.30/mt, $1.35/
mt lower on-day, and the Cal-14 at $82/mt, down 80 cents.
The Q1-14 swaps contract fell $6.25 on the week, and the
Cal-14 shed $3.20 during the same period.
Jaime Concha
Kowepo seeks 1.4 million mt in
five-year sub-bituminous coal tender
ManilaKorea Western Power (Kowepo) has called for
bids for a combined 1.4 million mt of sub-bituminous coal
over a five-year contract for April 1, 2014 March 31, 2019
delivery to its Taean power station.
The utility, in tender Kowepo-Coal-2013-LT-05, is seeking
280,000 mt of coal annually, from a single mine, with a
calorific value of 4,600 kcal/kg net-as-received, maximum
total moisture of 28% as received, maximum ash of 17% air
dried, minimum volatile matter of 20% air dried and
maximum sulfur of 1% as received.
No Russian coal offers will be considered in the tender
and bids close November 7.
Cecilia Quiambao
Combined coal stocks at six key Chinese
power generators steady on week
Hunan, ChinaCombined coal stocks held by six major
power generation companies in eastern and southern China
averaged 12.364 million mt in the week ended October 29,
similar to 12.365 million mt a week ago, Qinhuangdao Port
said in a weekly report Thursday.
The stocks held by Zhejiang Power, Shanghai Power,
Guangdong Power (Yudean), Guodian, Datang and Huaneng
will be able to meet an average 20 days of consumption, up
0.25 days week on week, the report said.
Dry Bulk Freight Assessments, October 31
Vessel Class Freight Rate ($/mt) Change
Daily
Richards Bay-India West Panamax 17.00 -0.50
Kalimantan-India West Panamax 12.30 -0.30
Richards Bay-India East Panamax 17.50 -0.50
Kalimantan-India East Panamax 10.90 -0.30
Australia-China Capesize 11.50 -0.50
Australia-China Panamax 15.00 0.00
Australia-India Panamax 17.00 -0.50
USEC-China Panamax 42.00 0.00
USEC-India Panamax 39.00 0.00
USEC-Rotterdam Panamax 14.75 -0.25
USEC-Brazil Panamax 15.25 0.00
Weekly
Richards Bay to ARA* Capesize 11.35 0.00
Virtual Capesize 1.90 -0.40
Differential Capesize 9.45 0.40
* Fridays weekly freight rate courtesy of SSY; East Australia: basis Hay Point
port. USEC: basis Hampton Roads. See methodology for further details.
4
Metallurgical Coke 62% CSR
$/mt Change % Chg
CFR India 272.00 0.00 +0.00
FOB North China (weekly) 255.00 2.00 +0.79
Yuan/mt
DDP North China (weekly) 1490.00 5.00 +0.34
Platts Daily Assessments for US Thermal Coal Exports, Oct 30
($/mt) Change
FOB US East Coast (6,500 NAR, 1% sulfur) 81.25 -0.25
FOB USGC Eastern Coal (6,000 NAR, 3% sulfur) 57.00 0.00
FOB USGC Western Coal (5,000 GAR, 0.5% sulfur) 41.50 0.50
FOB Canada/USWC (5,000 GAR, 0.5% sulfur) 56.50 0.00
*14-45 day basis, see methodology for further details.
The six utilities consumed a combined 4.333 million mt
of coal, averaging 619,000 mt/d, in the week to October 29,
down 1.2% week on week.
Zhejiang Power, Shanghai Power and Guangdong Power
are regional electricity companies while the other three are
national power generation companies.
Reggie Le
Panamax coal freight rates edge
down on key Pacific routes
SingaporePanamax coal freight rates on established routes
from South Africas Richards Bay and Indonesia to India
continued to trend down this week, falling 20-50 cents
Thursday, on lower-priced fixtures and weak market sentiment.
Platts assessed the Panamax coal freight rate from
Richards Bay to Indias east coast at $17.50/mt and to the
west coast at $17/mt Thursday, each down 50 cents from
Wednesday.
A fixture was heard concluded Wednesday at $16.85/mt
for shipment of 75,000 mt plus or minus 10% of coal from
Richards Bay to Dahej in Gujarat on Indias west coast for a
November 5-19 laycan, market sources said, although this
could not be confirmed.
The market is still heading south, a Singapore-based
shipbroker said.
We do not expect big drops, but we dont see any reason
for a pick-up either, the broker added.
Owners rates for Panamax vessels along the Richards
Bay to India route averaged $18/mt while charterers were
seeking $15.50-16/mt, sources said. A Singapore-based
trader reckoned offers at $17-18/mt were unlikely to attract
charterers.
Panamax coal freight rates also trended down on the
Indonesia to India routes Wednesday on the back of excess
tonnage in the market. Platts assessed Panamax coal freight
rates from South Kalimantan to Indias east coast at $10.80/
mt, down 40 cents from Wednesday, and to the west coast at
$12.40/mt, down 20 cents from the previous day.
A fixture was heard concluded at $10.50/mt for shipment of
70,000 mt plus or minus 10% of coal from South Kalimantan to
Ennore in Tamil Nadu on east coast India, sources said.
Downward trend expected to continue
Market sources expected Panamax freight rates to
continue trending down.
Panamax rates are continuing to head south, an India-
based broker said.
The demand that was driven by higher Cape freight
rates has eased off, he added and expected the downtrend
to continue.
Market participants also spoke of a fixture heard
concluded at $11.50/mt for a Capesize vessel from Richards
Dark Spreads, October 31
($/MWh) Change (Eur/MWh) Change
German Dark Spreads (35% efficiency)
Month-Ahead 20.14 0.34 14.63 0.25
Month-Ahead +1 19.71 0.96 14.31 0.69
Quarter-Ahead 23.89 0.36 17.35 0.26
Quarter-Ahead +1 14.05 0.11 10.20 0.08
Year-Ahead 18.67 0.21 13.56 0.15
Year-Ahead + 1 15.41 0.00 11.19 0.00
Year-Ahead + 2 13.46 0.14 9.77 0.10
German Clean Dark Spreads (35% efficiency)
Month-Ahead 13.78 0.54 10.01 0.40
Month-Ahead +1 13.35 1.16 9.69 0.84
Quarter-Ahead 17.53 0.55 12.73 0.40
Quarter-Ahead +1 7.69 0.31 5.58 0.22
Year-Ahead 12.10 0.40 8.79 0.30
Year-Ahead + 1 8.56 0.20 6.22 0.15
Year-Ahead + 2 6.61 0.34 4.80 0.25
UK Dark Spreads (35% efficiency)
Month-Ahead 53.68 -0.16 38.99 -0.11
Month-Ahead +1 56.88 -0.20 41.31 -0.14
Quarter-Ahead 55.87 -0.24 40.58 -0.17
Quarter-Ahead +1 48.33 0.24 35.10 0.18
Season-Ahead 46.36 0.23 33.67 0.17
UK Clean Dark Spreads (35% efficiency)
Month-Ahead 47.33 0.04 34.37 0.03
Month-Ahead +1 50.53 0.01 36.69 0.00
Quarter-Ahead 49.52 -0.04 35.96 -0.03
Quarter-Ahead +1 41.97 0.44 30.48 0.32
Season-Ahead 39.79 0.43 28.90 0.31
UK Dark Spread (35% efficiency)*
($/MWh) Change (GBP/MWh) Change
Dark Spread 50.54 -0.60 31.44 -0.42
Clean Spread 44.44 -0.41 27.64 -0.30
* Uses CIF ARA 15-60 day forward basis physical price
Heat Rate (Minimum efficiency to pay fuel cost)
(Btu/kWh) (%)
Gas, UK 8042 42.45%
Gas, Germany 5115 66.75%
Carbon-Adjusted
($/mt) Change
CIF ARA 100.12 -1.75
5
1746-8914
Editor-in-Chief
James OConnell: +65-6530-6476, James.
OConnell@platts.com, coal@platts.com
Associate editors
Mike Cooper: +618-9377-3914,
Michael.Cooper@platts.com
Cecilia Quiambao: +63-918-908-5023,
Cecilia.Quiambao@platts.com
Gareth Carpenter: +44-20-7176-6656,
Gareth.Carpenter@platts.com
Jacqueline Holman: +44-20-7176-6272,
Jacqueline.Holman@platts.com
Jaime Concha: +44-20-7176-6313,
Jaime.Concha@platts.com
Global Editorial Director, Power
Sarah Cottle
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Volume 13 / Issue 213 / October 31, 2013
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Recent heards in the thermal coal market
Date Grade of coal Details
31-Oct-13 FOB Newcastle 5,500 NAR December cargoes for 130,000 mt heard bid at $65/mt via broker Marex Spectron
31-Oct-13 CFR E China 5,500 NAR Late November/early December Australian origin cargo for 130,000 mt heard bid at $78.50/mt, via Marex Spectron
31-Oct-13 CFR S China 5,500 NAR Australian origin December cargo for 70,000 mt heard to trade at $78.75/mt, said Chinese traders
31-Oct-13 CFR S China 5,500 NAR Australian origin late December/early January cargoes for 130,000 mt heard bid at $77.75-78.25/mt to
offers at $78.75-79/mt, via Marex Spectron
31-Oct-13 FOB Kalimantan 5,000 GAR November/December cargo for 70,000 mt heard offered at $55.50/mt, said Indonesian coal producer
31-Oct-13 FOB Kalimantan 4,200 GAR Spot cargo for 50,000 mt heard offered at $39/mt, said Singapore-based trader
30-Oct-13 FOB Kalimantan 4,700 NAR Two Panamax shipments of Indonesian coal reportedly sold to Chinese buyers at $55.50/mt for November-
and December-loading: producer
30-Oct-13 FOB Kalimantan 3,700 NAR Two Panamax cargoes of branded coal reportedly sold to China at about $39.50/mt for November- and
December-loading: producer
30-Oct-13 CFR Mid-China December-arrival, 130,000-140,000 mt of Australian 5,500 NAR coal with maximum ash of 19% and
maximum sulfur of 0.75% offered at $86.50/mt: Marex Spectron
30-Oct-13 FOB Kalimantan 4,200 GAR Supramax cargo offered at $40/mt FOB for November-loading from Central Kalimantan: trader
30-Oct-13 FOB Newcastle 5,500 NAR 130,000 mt cargo offered at $65.10/mt for December first-half loading vs bids at $64.50/mt: Marex Spectron
30-Oct-13 FOB Newcastle 5,500 NAR 110,000-130,000 mt cargo bid at $65/mt for December second-half loading: Marex Spectron
29-Oct-13 FOB Kalimantan 5,200 NAR Panamax cargo with maximum 1.8% sulfur reportedly sold to Chinese buyer at $61.75/mt for December-
loading from East Kalimantan: trader
29-Oct-13 FOB Kalimantan 3,800 NAR Supramax cargo offered at about $38.75/mt for November loading: trader
29-Oct-13 CFR S China 5,500 NAR Australian origin spot-delivery cargo for 130,000 mt heard bid at $78.50/mt, via globalCOAL
Recent Coal Trade Transactions
Following is a table of recent international steam coal trade transactions. Date noted is the date of reported trade. Quantity in metric tons.
Prices in US $/mt, unless stated otherwise.
Date Buyer Supplier Tonnage Price (mt) Details
Steam coal
31-Oct-13 NW Europe utility-trader Trader 50,000 mt $84.75/mt DES AR (EFP) Multi-origin coal, December
30-Oct-13 Unknown Unknown 25,000 mt $84.75/mt FOB (EFP) Australian coal, January
30-Oct-13 NW Europe utility-trader Trader 50,000 mt $86.75/mt DES AR (EFP) Multi-origin coal, December
29-Oct-13 NW Europe utility-trader NW Europe utility-trader 50,000 mt $87/mt DES AR (EFP) Multi-origin coal, December
28-Oct-13 Trader Trader 50,000 mt $87.50/mt FOB South African coal, December
28-Oct-13 NW Europe utility-trader Trader 50,000 mt $86.50/mt DES AR (EFP) Multi-origin coal, January
28-Oct-13 NW Europe utility-trader Trader 50,000 mt $88/mt DES AR (EFP) Multi-origin coal, December
6
Bay to Krishnapatnam in Andhra Pradesh on Indias east
coast, though this could not be confirmed.
Shipbroker Fearnleys said in a weekly report Wednesday
that there appeared to be no light at the end of the tunnel
for shell-shocked owners of Capesize vessels.
Anitha Krishnan
Qinhuangdao ports coastal coal
freight rates rise for fourth week
Hunan, ChinaFreight rates to ship coal from northern
Chinas Qinhuangdao port to the other Chinese ports of
Zhangjiagang, Shanghai and Guangzhou rose in the week
ended October 29 for the fourth week in a row, Qinhuangdao
Port said Wednesday.
The freight rates from Qinhuangdao to Zhangjiagang for
20,000-30,000 mt capacity vessels averaged Yuan 63.0/mt
($10.3/mt) in the week ended October 29, up Yuan 2.80
week-on-week, the report said.
The Qinhuangdao-Shanghai route for vessels with a
capacity of 40,000-50,000 mt edged up Yuan 0.70 over the
same period to an average of Yuan 58.60/mt, while the
freight rate from Qinhuangdao to Guangzhou on 50,000-
60,000 mt vessels rose Yuan 1.50 to Yuan 66/mt.
Meanwhile, coal stocks at Qinhuangdao port stood at
5.37 million mt October 30, down from 5.73 million mt a
week earlier, port figures showed. This compares with 6
million mt on October 16, 6.26 million mt on October 9 and
6.15 million mt on October 2.
Reggie Le
Glencore Xstratas total Q3 coal
production up 8.5% to 37.1 million mt
LondonGlencore Xstratas total coal output in the third
quarter of the year rose 8.5% to 37.1 million mt, the miner
said in its quarterly production report Thursday.
Total coal production in the nine months to the end of
September rose 6% on-year to 104.6 million mt, which the
miner attributed to its Australian and Colombian Prodeco
operations offsetting a month-long strike at its Colombian
Cerrejon mine during Q1.
Australian Q3 thermal coal production was 15 million mt,
of which 13.7 million mt was export material, a 16% rise
from the same quarter in 2012, and 1.3 million mt was
domestic material, a 19% drop year on year.
Meanwhile, Australian coking coal production in the
third quarter fell 6% to 1.6 million mt, due to certain
decisions to counter the current low coal price
environment, the company said.
It said these included reducing output from Oaky North,
closing down the Collinsville mine in September, and
moving away from higher cost coking production at
Newlands to higher margin thermal coal areas.
Australian semi-soft coal production shed 17% year on
year to 1 million mt in Q3 2013.
The average realized export price for Australian coking
coal in the nine months to the end of September fell 32%
to $147/mt, while its average thermal coal price fell 20%
year on year to $84/mt and its semi-soft export price shed
30% to $115/mt.
The average Australian thermal coal domestic price,
however, gained 12% to $48/mt in the nine-month period.
Prodeco Q3 thermal coal output at 4.7 million mt
The miners wholly-owned Colombian thermal coal
operation, Prodeco, produced 4.7 million mt in Q3 2013, a
51.6% rise from the previous year.
Output at its other Colombian thermal coal mine,
Cerrejon, in which it has a 33.3% stake, rose 14% year on
year to 3.2 million mt.
In the nine months to September, Prodeco produced 14.2
million mt, 29% up from 2012, while Cerrejons output was
13% lower year on year at 7.7 million mt.
This difference was attributed to Prodecos expanded
production output to 20 million mt/year and its Puerto
Nuevo deepwater direct loading port which started
operations in April.
Cerrejon, on the other hand, suffered a 32-day industrial
action between February and March, which hindered its
production at the beginning of the year.
Prodecos average export price in the nine months to
September shed 3% on the year to $84/mt, while Cerrejons
average realized export price dropped 19% to $73/mt.
Glencore Xstratas South African thermal coal production
in Q3 was 11.6 million mt, of which 5.3 million mt was
destined for the export market and the rest to the domestic
market, both losing 2% on the year.
Glencore Xstrata attributed the reduction to a scaling
back of production at its Tweefontein and Impunzi mines,
which the miner attributed to a weak coal price environment
and geological issues affecting Koornfontein (Optimum).
The companys South African average thermal coal export
price dropped 22% year on year in the nine months to
September to $78/mt and its average domestic price fell 10%
to $26/mt in the same period.
Jaime Concha
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7
Indias Ennore port invites bids
to build new coal handling facility
New DelhiIndias government-owned Ennore Port
Limited (EPL) has floated a tender to build a new captive coal
berth for state-run power utility Tamil Nadu Generation and
Distribution Corporation Ltd (TANGEDCO) at the port on
the countrys East Coast.
The ports board had recently approved the proposal to
build a new coal berth with a 4 million-6 million mt/year
capacity, which would cost around Rupee 2.04 billion
($33.17 million), a source said.
Ennore port currently has two coal berths which handle
around 12 million mt/year of coal.
The port wants the third berth to meet the increasing
imported coal requirements of TANGEDCO, which is
expanding, the source said.
Ennore port handled 10.4 million mt of thermal coal
during April-September 2013, compared with the 6.3 million
mt handled in the same period in 2012, according to the
latest data by the Indian ports association.
The contract period for building the new coal berth is 24
months from the date the work is awarded, according to the
tender document.
The last date for bid submission is November 26.
Sapna Dogra
Asian met coal prices static
as bids and offers keep distance
SingaporeSpot coking coal prices in Asia saw little
movement Thursday with bids and offers poised around
previously assessed levels.
Platts assessed premium low-vol coking coal unmoved at
$160.50/mt CFR China, and second-tier HCC also steady at
$145/mt CFR China.
Offers for a variety of coals were heard mostly in line with
previous levels but liquidity remained thin as buyers held off
in the hope of further price declines.
There were a number of unconfirmed low offers for
several categories of coal, but it was not immediately clear
how repeatable these were.
For premium low-vol HCC, two offers could be seen from
traders for mid- or late-November in the low $160s CFR
China. Indicative buy-side interest, meanwhile, was observed
in the high $150s CFR.
If you really want to sell, you might have to drop your
offers by $5/mt. If people are scared they just bid much
lower, a Singapore trader said.
People are so negative, its very, very quiet, a Beijing
trader said.
Stock levels in ports and in the domestic market have
increased, a miner said, adding that this had comforted
buyers, prompting them to drop their bids.
Buyers were not fully passive, however, and one mill
source admitted to being on the lookout for bargains.
Julien Hall, Edwin Yeo
Coal of Africa Q1 July-Sep ROM
production up 7% at 202,910 mt
LondonCoal of Africa Limited (CoAL) produced 202,910 mt
of run-of-mine (ROM) coal in the July-September period, rising
7.4% on-quarter, the South African junior miner said Thursday.
The company did not provide year on year comparative
figures.
The quarterly rise came primarily from the Vele coking
and thermal coal colliery in the Limpopo coalfield, where
127,764 mt of ROM coal was produced in the first quarter of
the July 2013-June 2014 financial year, climbing from the
9,318 mt produced during the previous quarter when
operations had been halted due to a train derailment.
Vele processed 136,864 mt of ROM during the three-
month period, producing 32,399 mt of export quality
thermal coal, up from just 89 mt in the April-June quarter.
CoAL said it had also completed production of semi-soft
coking coal for metallurgical coal trials and sent more than
300 mt of material to ArcelorMittal South Africa for testing in
their coke batteries.
The miner previously announced in early June that it had
stopped production at its 6,000 mt/day Mooiplaats thermal
coal mine and put it under a care and maintenance program
after struggling to turn a profit on its operations for the past
two financial years.
It is aiming to sell its Mooiplaats, Woestalleen,
Opgoedenhoop and Holfontein assets to reposition itself as a
coking coal producer.
The company has made significant progress in the
execution of its enhanced turnaround strategy which will
allow it to concentrate on the next phase of the process.
This entails the construction of the modified plant at Vele
and the move to full production, CoAL executive
chairman David Brown said.
Plunge in export sales
CoAL noted that export coal sales from Mozambiques
Matola Terminal plunged 58.3% from the previous quarter
to 56,799 mt due to the complete consumption of ROM
export quality coal stockpiles at the Woestalleen complex
during the previous three-month period and decreased
production from Mooiplaats.
The miner pointed out that standard Richards Bay export
quality thermal coal FOB prices had continued to be weighed
down during the quarter, falling to $73/mt at the end of the
September from $77/mt at the end of the June.
However, it said that this was partially offset by the
8
weakening South African rand against the dollar.
Sales of middlings coal to state-owned utility Eskom fell
30% from the June quarter to 141,798 mt due to halted
production at Mooiplaats.
CoAL said it had continued to reprocess discard dumps at
Woestalleens site during July-September producing 99,257
mt of coal for sale to the utility, up 23.3% from 80,498 mt in
the previous quarter.
Mooiplaats also produced 61,057 mt of middlings coal for
Eskom during the period, down from 134,020 mt in the
April-June quarter.
Jacqueline Holman
Australias Cockatoo Jul-Sep coal
production down 14.6% to 198,897 mt
LondonAustralian miner Cockatoo Coal said Thursday
its run of mine (ROM) output from July-September, its fiscal
first quarter, fell 14.6% year on year to 198,897 mt.
Its Baralaba mine, in Queenslands Bowen Basin, shipped
135,063 mt of coal in the period, down 10.9% year on year,
which Cockatoo attributed to delays in September at RG
Tanna port part of the Port of Gladstone.
Cockatoo said it had already reversed that fall by selling
163,971 mt in October.
In the September quarter, its total shipments were equivalent
to 59,755 mt of PCI coal and 75,308 mt of thermal coal.
The miners production cash cost for the quarter was
$90.43/mt FOBT Gladstone, including royalties.
Cockatoo said that during its first quarter the Queensland
Minister for State Development, Infrastructure and Planning
declared its Baralaba expansion project as a prescribed project
which, it said, enables the Queensland Coordinator-General
to intervene in approvals processes for the construction,
maintenance and operation of a project to ensure timely
decision making.
The project involves expanding its mine to the north of
its current tenement, with plans to increase annual
production to 3.5 million mt from 750,000 mt.
The miner said earlier it expected to produce first coal
from the project by mid-2014.
Cockatoo produced 707,381 mt of ROM coal at Baralaba
in its 2012/13 year to June 30, up 17.9%.
Jaime Concha
Macquarie forecasts gloomy
coal price outlook in China
ManilaMacquarie Bank has said the outlook for a coal
price recovery in China remains bleak as more supply is
expected to flood the market and domestic production costs
are minimized.
Indeed the outlook for coal, both met and thermal, was
viewed as quite bleak, with cost structures falling and more
supply expected to hit the market, the bank said in an
October 30 report.
A Chinese coal transport and distribution group executive
said the recent drop in Chinese coal prices has already
stopped but a meaningful recovery is not expected to
happen in the near term, Macquarie reported.
This executive said there is a potential for average coal
prices to fall again next year because any domestic price gain
will be offset by more imports and a return of Chinese coal
mine supply that has shut down this year, the bank reported.
He also estimated Chinas total coal production capacity
at 5.4 billion mt by 2017, including a 400 million mt/year
increase from coal mines in Shanxi province of which one-
third will be metallurgical coal.
However, Macquarie analyst Matty Zhao estimated the
Chinese domestic supply growth at 80 million mt/year.
Zhao said around 12% of Chinese coal output is produced
at a loss at current price levels despite a reduction in fees and
levies for Shanxi and Inner Mongolia.
Drop in marginal production costs
These fee reductions and a decline in trucking costs have
taken marginal production costs down to Yuan 580/mt
($95.18/mt) from Yuan 650/mt.
Trucking costs have fallen to Yuan 0.30/mt/km from
Yuan 0.40/mt/km, narrowing the cost disparity between rail
(Yuan 0.20/t/km) and trucking ahead of the alleviation of rail
capacity bottlenecks in 2015.
Macquarie said Chinese coal market information provider
Fenwei attributed the recent gains in the domestic thermal
coal price to Yuan 530/mt from Yuan 520/mt to an increase
in demand due to improved power generation and a cut in
supply from Shanxi where some mines temporarily stopped
production to upgrade operations.
Platts and Fenwei have formed a commercial partnership
and this month launched their first joint products: a FOB
Qinhuangdao 5,500 kcal/kg NAR thermal coal price
assessment and CFR Guangzhou 5,500Kcal/kg NAR thermal
coal price assessment.
Macquarie said Fenwei forecast an uptick in thermal coal
prices to Yuan 550/mt in the near term but a further
potential downside next year.
Fenwei said the output of state-owned coal enterprises,
comprising 65% of total output, is still rising even though
their production costs are Yuan 50-100/mt higher compared
with private coal miners. Macquarie reported.
Fenwei also said about 20 million mt of supply from the
Ordos region has been semi-permanently taken out of the
market due to losses, the bank said.
It also said Fenwei forecast that most private coal mines
will become unprofitable if prices fall to Yuan 420/mt.
Fenwei forecast a peak in thermal coal demand in 2020-
9
2025, with 3-4% per annum growth, it added.
By this time, lignite will have the fastest supply growth
and imports will be roughly flat, according to Fenwei as
reported by Macquarie.
Fenwei said the cost of production at state-owned coal
enterprises is declining, adding that a 600 mt/year railway
capacity due to be delivered over 2014-2015 will reduce
marginal costs by Yuan 40/mt.
Cecilia Quiambao
Senators urge Obama administration
to limit rules on coal exports
WashingtonSix US senators Wednesday pressed the Obama
administration to limit the impact that looming changes to
federal environmental review rules may have on coal exports.
In a letter sent to Jo-Ellen Darcy, assistant secretary of the
Army for Civil Works, and Nancy Sutley, chairman of the
Council of Environmental Quality, the senators urged the
administration to limit the expansion of National
Environmental Policy Act reviews, which they claim could
hurt US coal exports.
The letter was signed by Republicans David Vitter of
Louisiana, John Barrasso of Wyoming, Jeff Sessions of
Alabama and James Inhofe of Oklahoma and Democrats Joe
Manchin of Wyoming and Heidi Heitkamp of North Dakota.
The senators are concerned that the White House could
finalize new guidance on NEPA reviews in a way which
would force regulators to broadly review the impact of
climate change and greenhouse gas emissions in foreign
markets where coal may be shipped.
Such a review effectively places a climate change litmus
test on exports and requires a type of analysis that is not
practicable, but is certain to lead to a slippery slope that
undermines jobs, American businesses and exacerbates our
trade deficit, the senators wrote.
Cumulative concerns like greenhouse gas emissions that
may occur in countries across the Pacific Ocean are not
closely related to the projects you are being asked to
consider.
In June, Jennifer Moyer, the acting chief of the Army Corps
of Engineers regulatory program, said regulators would
conduct a separate environmental review for each of three
proposed coal-export projects in the Pacific Northwest, rather
than a broad, single review of the impact of all three projects.
Opponents of these export projects had pushed for an
area-wide, or regional, environmental impact statement for
the three coal export projects, which would have likely made
approval more difficult.
The senators wrote that while they applauded Moyers
commitment, it was unclear if the administration would
require broad reviews in its pending NEPA guidance.
Brian Scheid
noted that this price was nearly mid-way between bids of
$78/mt CFR basis and offers at $79/mt.
Bids on Australian high-ash cargoes of 5,500 kcal/kg NAR
thermal coal were at $78/mt basis South China for delivery
in late November and early December, though offers were
scarce at the time, as heard through Marex Spectron.
Some interest was also heard through the broker for
Australian Capesize cargoes for shipment to a port in eastern
China at $78.25/mt in late November and early December.
For late December and early January there was a bid on
an Australian cargo at $77.75-78.25/mt CFR basis to selling
interest at $78.75-79/mt.
Chinese market sources pointed to lower prices for
Capesize vessel fixtures as a pivotal factor.
The shipping market appears to be collapsing, said a
trader based in Beijing.
A fixture was heard in the market at $12.50/mt for a
Capesize ship to sail from Australias Newcastle port in the
middle of November to an unnamed destination port in
China, and the charterer was a Chinese trading company.
Some market sources in China quoted even lower rates on
Capesize ships on the eastern Australia to South China trade
route, in some cases as low as slightly under $12/mt. Only
one month ago prices were around $20/mt.
Declining availability
Along with cheaper freight, declining availability is a factor
that has been supportive of FOB prices particular in Australia.
All November cargos have been booked. Only some
December cargoes are available, said a Beijing-based trader.
Offers for Capesize cargoes of 5,500 kcal/kg NAR
Australian coal were heard around $65/mt FOB for December
delivery, while bids were $2 lower at $63/mt FOB, according
to the Beijing-based trader.
The trader believed that $64-64.50/mt FOB was a
tradable price for December cargoes of 5,500 kcal/kg NAR
Australian coal.
However, according to a Singapore-based broker, Chinese
bids for 5,500 kcal/kg NAR Australian thermal coal were still
muted and as low as $63/mt FOB.
November-loading cargoes of maximum 23% ash
Newcastle thermal coal were heard bid around $64/mt FOB
basis, and for December cargoes buying interest was heard at
$65/mt, according to broker Marex Spectron.
At Qinhuangdao port, prices for domestic thermal coal for
prompt delivery have continued to rise.
Chinese producer Shenhua was heard offering 5,500 kcal/
kg NAR domestic coal at Yuan 537/mt for immediate delivery
and up Yuan 4 on-week, and utilities could secure a Yuan 10/
mt discount to this offer price.
Mainstream buying interest was heard in the
Qinhuangdao domestic thermal coal market at Yuan 530/mt
China seaborne thermal coal cargo
prices slip on weaker freight ...from page 1
10
to offers at Yuan 545-550/mt inclusive of VAT at 17%.
A transaction was reported at Yuan 542/mt FOB
Qinhuangdao port including VAT for Inner Mongolian
specification thermal coal basis 5,500 kcal/kg NAR sold by
Shenhua.
At the close of Asia trade, the Platts/Fenwei China Coal
Index (CCI 1) for domestic thermal coal traded at
Qinhuangdao port was assessed at Yuan 539/mt inclusive of
VAT, Yuan 4 higher on day.
The CFR South China (CCI 8) price was assessed Thursday
at $78.50/mt basis 5,500 kcal/kg NAR excluding Chinese VAT,
and the joint assessment was 20 cents higher from Wednesday.
Platts price assessment for CFR South China cargoes of
5,500 kcal/kg NAR thermal coal for arrival in South China
ports in the next 15-60 day period came out at $78.75/mt
Thursday, 55 cents higher on day.
Typical 20% ash Newcastle 5,500 kcal/kg NAR thermal
coal for loading in the next 7-45 day period was assessed at
$64.60/mt FOB, steady from Wednesday.
Indonesian cargoes garner higher Chinese interest
Market sources said recovering Chinese domestic thermal
coal prices were pushing buyers to look for alternative
imported cargoes, while Indian buyers were subdued because
of the Diwali festivities, said traders.
China is slightly active and we are getting inquiries.
Domestic prices are recovering so people are keen to buy,
said a trader based in Singapore.
An Indonesian producer said he had heard of a
Kalimantan cargo with a calorific value of 5,000 kcal/kg
gross-as-received basis being traded this week at $55.50/mt
FOB for November-December delivery to China, although
Platts was unable to immediately confirm this.
A Panamax cargo of 5,000 kcal/kg GAR east Kalimantan
thermal coal was heard being offered at $63.50/mt CFR South
China for late November or December delivery, according to
a Tianjin-based trader.
Some of our utility customers are more active in purchasing,
but their purchase prices have remained muted for 4,700 kcal/kg
NAR Indonesian thermal coal, a Beijing-based trader said.
For November-December delivery 4,700 kcal/kg NAR
Indonesian thermal coal, Chinese utilities purchasing prices
have been no higher than Yuan 465/mt, or Yuan 397/mt
without VAT on a CFR basis.
A Fujian-based trader agreed and noted that he needed to
keep imported prices for 4,700 kcal/kg NAR Indonesian coal
below $64/mt CFR in order to make a profit.
4,700 NAR Panamaxes offered at $64.50-65.50/mt CFR
Panamax cargoes of 4,700 kcal/kg NAR Indonesian
thermal coal were currently offered in the Chinese market at
$56-57/mt FOB, or some $64.50-65.50/mt CFR for November
and December delivery, market sources said.
Major Indonesian thermal coal miners were heard to offer
their 4,700 kcal/kg NAR material at slightly higher prices
DES ARA market had previously been pricing in potential
port issues at US producer Drummonds Colombian
operations concerning the January 1 deadline for converting
its coal export terminal to direct loading operations.
However, he said that it seemed that Drummond would
get an extension, which had calmed any fears in the market
that supply would be affected.
The utility source added that gas storage in Europe was
also pretty full, meaning that there was less tension out of
the gas market, subduing gas and also coal prices.
There is no real reason for the market to be tight, he
commented.
A Switzerland-based trader agreed, commenting that the
market had been overpriced and was now correcting lower
to a more reasonable value. It moved up too much the
correction lower was to be expected, he said.
The only fixed-price deal in the Atlantic market was a
50,000 mt multi-origin December DES AR trade at $84.75/mt
via Atlantic Brokers. The deal had exchange of futures for
physical (EFP) terms attached and was sold by a trader to a
utility $2 below a similar transaction Wednesday.
South African Capesize shipments to pressure DES ARA
Meanwhile, trading sources continued to note that a
number of Capesize shipments of South African coal were
expected to start reaching ARA from November onwards,
CIF ARA spot prices fall over $1
as oversupply picture builds again ...from page 1
about $57-58/mt FOB.
The Beijing-based trader was currently in talks to book a
Handysize cargo of 3,800 kcal/kg NAR Indonesian thermal
coal at about $38.50/mt FOB, or some $51-52/mt CFR for
November delivery.
The supplier is about to agree to our terms, he said.
A Singapore-based trader said a 4,200 kcal/kg GAR, 50,000
mt cargo from South Kalimantan was being offered to
interested buyers at $39/mt FOB.
India is quiet this week because of Diwali, the first
Singapore-based trader said.
This trader said he heard an offer for a CFR east coast
India cargo of Kalimantan coal with a CV of 4,200 kcal/kg
GAR at $52.50/mt.
Platts assessed Thursday the 90-day price for FOB
Kalimantan thermal coal with a calorific value of 5,900 kcal/
kg GAR at $66.60/mt, flat on-day, and for 5,000 kcal/kg GAR
at $54/mt, up 25 cents from Wednesday.
FOB Kalimantan thermal coal with a calorific value of
4,200 kcal/kg GAR for loading in the next 7-45 days was
assessed at $38.50/mt, stable from Wednesday, and for 3,800
kcal/kg GAR thermal coal the assessment price was $32.70/
mt, down 20 cents on-day.
Mike Cooper, Cecilia Quiambao, Reggie Le, Jingtai Lun
11
fixed by a large Switzerland-based trading house.
I believe 4-5 million of South African coal will be
making its way into ARA in Q4-13 and Q1-14 probably
replacing all the Drummond coal that was not shipped
because of their force majeure declaration, the utility source
said, referring to a 53-day industrial action that took place at
the producers Colombian unit in August and September.
The Switzerland-based trader agreed that several vessels had
already been fixed from Richards Bay to Rotterdam in October
and November and more were expected for December.
I believe it will put pressure on DES prices for sure,
although I do not think the downside is too much. The Swiss
trading house is playing a big paper game with the spread
between API2 and API4 they cannot sell [Richards Bay]
physical into China or India because there is no market at
these levels, so they are bringing them into Europe, he said.
According to shipbroker Fearnleys weekly report
Wednesday, spot Capesize freight rates from Richards Bay to
Rotterdam are at $10/mt, meaning that, with CIF ARA 15-60
day prices at $85.60/mt, selling Richards Bay spot coal into
ARA would translate to a loss of about $8/mt, according to
Platts calculations.
The spot South African Richards Bay FOB physical thermal
coal market fell almost $1 Thursday, the third consecutive
day of falls, with trading sources noting that there was no
market for South African coal at levels over $85/mt.
Platts assessed the price of physical Richards Bay thermal
coal basis 6,000 kcal/kg NAR and for loading within the next
7-45 day period at $83.70/mt FOB, down 90 cents on-day.
The Richards Bay FOB spot market has lost $2.80/mt over
three straight days, partly erasing the six-day rally of $11.50/
mt that ended last Thursday.
No interest from Asia at higher levels
Sooner or later the market will have to move back to
real numbers in the low $80s/mt before we see any interest
from India and other Asian buyers, the Switzerland-based
trader said.
The utility source noted that fundamentals had not
pushed Richards Bay FOB prices higher in their recent bull-
run and were coming off with European financial and
physical prices.
The Switzerland-based trader echoed what sources had
said Wednesday that there was more Asian demand,
especially from Indian buyers, for Richards Bay 5,500 kcal/kg
NAR material, as the levels of $63-64/mt made more sense.
He noted that, with the FOB Richards bay index moving
lower, the 5,500 kcal/kg NAR discounts to the 6,000 kcal/kg
index were closing in.
The Switzerland-based trader commented that this would
bring some relief to those long on the lower grade material
that had an index-linked position and may have entered into
contracts when the discount had been $4-5/mt, compared
with recent discounts of $18-19/mt.
Platts assessed the price of physical Richards Bay thermal
coal basis 5,500 kcal/kg NAR and for loading within the next
7-45 day period at $64.60/mt FOB, unchanged on-day.
Jacqueline Holman

Coal Trader Intl

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Volume 13 / Issue 213 / Thursday, October 31, 2013

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