October 14, 2008

C&A offers Panamax of coal to Napocor

Platts reported that Rio Tinto's Coal & Allied has made an unsolicited offer to supply one Panamax cargo of coal to the Philippines' National Power Corp for March delivery either to the Sual or Masinloc power stations.

An industry sources told Platts that the spot price offer, which will expire this week is USD 191 per tonne CNF if the cargo is accepted for Sual or USD 192 per tonne CNF for Masinloc.

Traders estimate freight costs between Newcastle and the Philippines at about USD 40 per tonne providing a USD 151 per tonne to USD 152 per tonne FOB net back to the C&A offer.

Glencore's price offer which lapsed this month involved USD 150 per tonne FOB and freight of USD 30.25 per tonne.