Reuters reported that physical prompt coal prices were unchanged despite oil's rise close to a three month high and a vote by striking Colombian rail workers to return to work.
Coal often, but not always, moves in line with oil coal prices usually lag oil's movements. Oil rose to almost USD 113 a barrel, underpinned by expectations of further US and Chinese economic stimulus and worries over North Sea supply constraints, but coal did not react.
Few trades were reported, and all at levels unchanged from the previous day. Two October DES ARA cargoes traded at USD 96 in the middle of bid offer range.
The market stabilized after dropping to a two-year low of around USD 82.00 in June 2012 and crept higher on sentiment more than physical supply disruption as a result of the Colombian strikes.
Workers on Colombia's Fenoco railway which moves coal to port for Drummond, Goldman Sachs and Glencore's Prodeco, have been on strike for more than three weeks, cutting the country's exports by an estimated 4 million tonnes in 2012.
Fenoco workers voted to end the strike, but the union called the vote illegal and vowed to continue industrial action in pursuit of improved pay and benefits.
The tonnage lost as a result of the Fenoco strike and a separate dispute at Prodeco's mines may have an impact on prices in two to three months' time when end users return to the market for Q4 cargoes but at present, there is still more coal available than there are buyers, traders and utilities said.
One trader said that "There were several bidders for October DES cargoes but nothing which suggests they wanted replacements for anything lost from Colombia."
Trades
Two October 2012 delivery DES ARA cargoes traded at USD 96 a tonne, unchanged.
Prices
A September 2012 loading South African cargo was bid at USD 87.05 and offered at USD 89.95, unchanged.
An October 2012 South African cargo was bid at USD 91.25 and offered at USD 91.50, unchanged.
A November 2012 DES ARA cargo was bid at USD 96 and offered at USD 97, also unchanged.
Source - Reuters
(www.coalguru.com)
