Reuters reported that prompt thermal coal prices dropped by over USD 2 a tonne on Wednesday in expectation that Colombian coal exports would return to normal now that a rail strike which triggered force majeures clauses has been declared illegal.

Prices fell to USD 93.50 per tonne to USD94 per tonne.

TRADES

An October DES cargo traded at USD 93.50 down by USD 2.50 from Tuesday's last traded level

PRICES

An October South African cargo was bid at USD 89.75 and offered at USD 90, down 50 cents on the bid

A November DES ARA cargo was bid at USD 94.00 and offered at USD 94.35 down by USD 2.00

European utilities and traders said demand remained subdued in Europe and much of Asia, and until buying picks up in September, prices are likely to come under renewed downward pressure.

European utility source said “I think next year, maybe even later this year, we'll see a slightly more balanced market, less oversupply so we should see prices back at USD 100.”

Coal prices had nudged close to USD 100 a tonne after dropping to a two-year low of around USD 82 in June, bolstered by the strikes by workers on Colombia's Fenoco railway and at Glencore's Prodeco mining unit.

Source - Thomson Reuters

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