Skip to main content

Coal prices up after Colombian decision

World Coal,


Thomson Reuters Point Carbon has released this week’s Cross Commodity Report.

Coal

The API2 contract rallied on Wednesday last week after the Colombian mining ministry decided not to extend the deadline for coal producers to convert export terminals to direct loading, affecting supply to Europe. However on Thursday prices came down from the US$ 83/t level as the enforcement of the deadline remained uncertain. Trading ended on a 0.4% increase from last week.

Looking forward, after Drummond confirmed it would not meet the January deadline for the terminal extension, it now looks uncertain whether the Colombian government will grant exemptions. It is possible that the shortfall can be met with South African coal. Union talks starting today may provide hints towards strike action at the beginning of 2014. Thomson Reuters expects volatile prices this week, slightly biased to the upside.

Carbon

Carbon prices fell last week, weighed on by additional supply from EIB sales. The losses were limited as EU lawmakers showed swift progress on the backloading proposal and expected positive outcome in meetings at the beginning of December. Last traded price was €4.42/t, down 1.6% week-on-week.

The report expects prices to trade sideways this week, as the positive momentum over backloading ahead of the EU lawmaker’s meetings in early December weighs against the downward pressure from NER300 sales and bearish technical signals. Clean dark spread looks likely to narrow further, adding pressure to utility hedging demand and prices.

Adapted from press release by Katie Woodward

Read the article online at: https://www.worldcoal.com/coal/25112013/coal_prices_up_after_colombian_decision_292/

You might also like

EMI

Electrification in Mining virtual conference

Join us on 16 April 2024 for Global Mining Review's first Electrification in Mining event is an interactive virtual conference, focusing on electrification as the future of sustainable mining and exploring the innovative approaches and technologies being developed to facilitate its implementation.

Register for FREE »

 
 
 

Embed article link: (copy the HTML code below):