Reuters reported that prompt physical coal prices shot up by over USD 1.50 a tonne on Friday, bid higher on both swaps and physical led by a European utility, but the outlook during the summer remains grim.

TRADES

An August delivery DES ARA cargo of Colombian coal to Rotterdam traded at USD 87.70 a tonne on globalCOAL.

PRICES

A July loading South African cargo was bid at USD 85.00 for 150,000 tonnes, up over USD 2.00 from Thursday

An August South African cargo was offered at USD 88.00, up over USD 1.00.

An August DES ARA cargo was bid at USD 87.70, up 50 cents and offered at USD 90.50

A September DES cargo was bid at USD 88.00, up 25 cents

One utility said “Almost everywhere looks bearish from a macro perspective, almost every origin of coal is close to pricing in to Europe but coal prices went up sharply. But until sufficient output cuts are made and US, Colombian and Russian cargoes in traders' hands are absorbed, the market will be vulnerable and could drift back to recent two year lows.”

As per report, there are over 9 million tonnes in inventories in Qinhuangdao and usually the normal level is 6 million, plus high inventories in southern ports.

Source - Reuters

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