Traders in the European thermal coal market were unchanged in sentimentThursday as US and Russian coal remains well offered, with benchmark gradeRichards Bay 6,000 kcal/kg South African coal offered near $100/mt.
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Markets have been sluggish due to holiday absences across the Atlantic Basin,a Central Europe-based trader said. The trader noted light trading activity isexpected next week as well due to the upcoming Russian national holiday.
A 50,000 mt, multi-origin, July-loading 6,000 kcal/kg NAR cargo traded in thelate morning at $85.75/mt. It was the first July-loading cargo seen so farthis year.
Higher spot demand for off-spec coals is being seen from North Africancountries like Morocco and Egypt, which typically receives US or Russian coal,a Swiss-based trader said.
The source said Colombian coal has been less well offered into Europe asproducers see greater margins placing tons elsewhere.
S&P Global Platts assessed the CIF ARA 6,000 kcal/kg NAR, 15-60 day price at$83.90/mt, down 30 cents on day.
The trader said the gap between FOB Richards Bay and CIF ARA prices was nowover $10, explaining this has led 6,000 kcal/kg NAR, FOB Richards Bay coalunlikely to price into any market globally.
As a result, this has put upwards pressure on mid-CV coal out of South Africa,which has already been tight in supply recently.
Platts assessed the FOB Richards Bay , 5,500 kcal/kg NAR, 7-45 day price at$84.45/mt, down 45 cents on day but up $2.85 on week.
--Piers De Wilde, firstname.lastname@example.org