Reuters reported that steam coal prices made modest gains of around 75 cents per tonne on Monday as the arrival of more cargoes balanced against a freeze across much of Europe, which drove up gas and oil prices.

A February delivery DES ARA parcel of multi origin, including American coal, was bid at USD 96.75 and offered at USD 98.00, up 75 cents.

A March DES ARA for coal was bid at USD 96.50 and offered at USD 100.50, down 50 cents.

A March South African cargo was bid at USD 105.00, down 50 cents.


Several European utilities and utility/traders signed term contracts two years ago to import American coal, which have kept stockpiles swollen through a winter that has been unusually mild until the latest cold snap.

As more US and Colombian cargoes arrive in Europe while spot buying remains weak, some downward pressure is expected on prices. How far this will be offset by a resumption of large scale Chinese imports, remains to be seen.

Floods in Australia and heavy rains during the past month in Indonesia are already delaying shipments, but so far end users have not been compelled to seek replacement tonnes.

(Sourced from Reuters)