Central Appalachian thermal coal prices fall in wider sell-off
Washington (Platts)--5May2011/738 pm EDT/2338 GMT
Deep losses across the wider energy complex pulled Central Appalachian
coal prices lower on Thursday, with barge and rail markets sustaining
substantial pullbacks along the forward curve.
At the front of the curve, prompt-month CAPP barge prices fell about
3.9%, while CSX rail prices slid 1.5%. These losses were less severe than
those in the crude and natural gas futures market.
One source said he does not expect to see as steep declines in coal, as
producers will stop digging for the commodity at low levels. Still, the same
source added that he does not expect crude prices to bounce back to the
$110/barrel level anytime soon.
Article continues below...
Request a free trial of: Coal Outlook
Coal Outlook is delivered daily and focuses on marine fuel prices and supply in major ports worldwide. It is essential reading for those who require accurate and timely data on this market sector.
CAPP barge June traded at $75.50/st for five barges. Platts assessed the
term at $74.50/st, down $3/st.
Losses were fairly even across the curve, with Q4 2011 trading at
$78.50/st for five barges, and at $77/st for five barges twice. The term was
assessed at $77/st, down $2.75/st.
Further out, Q1 2012 traded at $79.75/st for 10 barges. The term was
assessed at $79.55/st, down $2.75/st.
Cal 2013 was heard to have traded at $89/st. The volume was undisclosed.
Q1 2012 over Q2 2012 traded at a discount of $2.50/st for five barges and 20
Q4 2011 CAPP barge over Norfolk Southern 12,500-Btu/lb, 1% spread traded
at a premium of $2.50/st for five barges over one train.
CSX June physical traded at $67.25/st for 5,000 st. The term was also
heard to have traded at $66.50/st and $67.25/st. Losses were not as severe in
the rail-delivered market, with the term assessed at $66.50/st, down $1/st.
The curve flattened to a small degree, as relatively greater losses were
seen further out. CSX physical Q4 2011 traded at $73.50/st for one train. The
term was assessed at $73.50/st, down $2.50/st.
Turnover in the CAPP rail (CSX) swap market was noticeably improved.
CSX financial Q3 2011 traded at $71/st for 5,000 st, at $70.50/st for
5,000 st, at $70.75/st for 5,000 st, and at $70.25/st for 20,000 st.
CSX financial Q4 2011 traded at $73.75/st for 10,000 st, at $73.60/st for
5,000 st, and at $73.50/st for 5,000 st, 20,000 st, and 35,000 st.
Q3 2011 CSX financial over CAPP barge traded at a discount of $4.75/st
for 15,000 st over 10 barges.
It appeared that near-term prices for Powder River Basin 8,800-Btu/lb
coal have already neared their lows, with prices flat to up in the session.
Platts assessed the June term at $11.30/st, unchanged compared with Wednesday.
PRB financial Cal 2012 traded at $13.90 for 10,000 st.
PRB physical Q3 2011 was heard to have traded at $12.30/st.
On the IntercontinentalExchange, CAPP barge June 2011 was seen with a
bid of $73/st for five barges
Q4 2011 was quoted at a bid-ask of $76.50-$78/st.
--Chuck Noh, firstname.lastname@example.org