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Coal prices to remain under pressure this week

World Coal,


Thomson Reuters Point Carbon has released this week’s Cross Commodity Report, assessing price drivers for contracts across the energy markets and a discussion of last week's price developments, including coal and carbon.

Coal

API 2 coal prices dropped to below key resistance level at US$ 83/t as market focus remained on the oversupplies in the market. Falling rupees also kept the demand from major importer India at low levels. Trading volumes were rather low due to Monday's UK holiday and the holiday season across most of Europe.

Coal prices will remain under bearish pressure from the weak market fundamentals. The drop below US$ 83/t indicates further room to the downside. However, profit-taking at current low price levels would prevent the contract from falling too far below. Developments in crude oil prices - where prices reached a 6 month high last week on the back of concerns about a potential military strike on Syria – would also have some impacts.

Carbon

Higher auctioning volumes are expected to add bearish pressure on the market this week. Auctioning will accelerate this week as governments auction 6.8 million t more allowances than last week. A bearish technical short-term signal could prompt further selling to the €4.3/t support level.

Edited from various sources by Jonathan Rowland

Read the article online at: https://www.worldcoal.com/coal/02092013/coal_prices_to_remain_under_pressure_this_week_coalnews_article01/


 

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