Market insights: physical coal prices

Thompson Reuters Dry Freight report shows that supply fears have weighed heavily on coal prices, as physical coal prices in Europe dip.

Europe

European physical coal prices have dipped as supply concerns in the Atlantic basin eased, while the Asia-Pacific market tightened on the back of rising Japanese imports and Indian production problems.

Coal prices for delivery in January into Europe’s main import terminals of Amsterdam, Rotterdam and Anstwerp were valued as around US$ 83.50/t on Friday 28^th November, almost a dollar lower than on Thursday, according to the Dry Freight report.

Australia

Australia’s Whitehaven Coal ltd has announced the company has been granted approval from its banking syndicate to amend its AU$ 1.2 billion debt facility.

The approval follows delays in Whitehaven getting its key Maules Creek coal project up and running.

Whitehaven, Australia’s second largest independent coal miner, has been working with lenders to amend its debt facility for months, with uncertainty and weak international coal markets weighing on its share price.

China

According to the report from Thompson Reuters, Chinese firms are now looking to buy foreign coal assets, but for reduced prices.

The report says that Chinese companies are looking to seek out and purchase overseas coal mines as Beijing’s switch to cleaner fuels stokes demand for higher-quality coal produced in countries such as Australia, according to people familiar with the firms’ strategies.

A renewed appetite for acquisitions by the world’s largest coal consumer will be a big boost for miners who are trying to dispose of assets worth billions of dollars to boost shareholder returns. 

Adapted from press release by Sam Dodson

Read the article online at: https://www.worldcoal.com/coal/02122013/thompson_reuters_dry_freight_report_311/