💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

THERMAL COAL-Supply weighs on weaker market

Published 22/10/2015, 04:49 am
© Reuters.  THERMAL COAL-Supply weighs on weaker market

* European API2 2015 coal futures at 12-year low

* China, India focus on domestic output, not imports

LONDON, Oct 21 (Reuters) - European thermal coal prices held at historically low levels, maintaining this year's downtrend, as chronic oversupply and slow demand limited any upside.

Coal prices will remain in a rut until more mines are closed to address the supply overhang that's weighed on the market for over three years, analysts said. ID:nL8N12J48J

European cargoes for nearby delivery into Amsterdam, Rotterdam or Antwerp (ARA) GCLARAPDSMc1 last closed at $51.75 a tonne, down over 20 percent since the start of the year.

European API2 2015 coal futures TRAPI2Yc1 were down 0.45 cents or 0.9 percent at $47.20 a tonne, their lowest since September 2003.

"In the Atlantic, demand is set to keep dropping," said an analyst.

The slowdown in shipments to top importer China and a flattening of volumes going to India were a further blow to the market, as both countries refocused on their domestic output. ID:nL8N12J3DU ID:nL8N12K2G5

Analysts said the Australian coal market was better supported than markets in other regions due to demand for its qualities of coal.

"We have reached a bottom in Asia and now the only thing that can really make prices drop further is if you have oil at $20 and weaker currencies (in producing countries)," the analyst said.

Prompt prices for Australian coal cargoes from its Newcastle terminal GCLNWCPFBMc1 have fallen by over 7 percent in the past month, closing at $53.40 per tonne on Tuesday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.