Resumption of Drummond coal exports increases surplus
The resumption of Drummond coal exports from Colombia has increased the Atlantic surplus, according to the latest Cross Commodity report from Thomson Reuters Point Carbon.
Coal
The Cal-15 contract closed at US$ 80.55 per million t, as coal prices have still not recovered from lows in late February. Thomson Reuters expects the front to remain bearish next week. Drummond exports from Colombia have increased to Atlantic surplus, dragging coal prices down. Other bearish factors include lower utility coal burn due to a mild winter. The outlook is that the market will stagger down progressively, rather than dropping rapidly.
Carbon
Carbon prices posted another sharp decline last week with German power prices hitting new nine-year lows every day. Low German power prices and concern from traders about industrial selling were the main influencing factors on carbon prices.
The carbon market will see the release of verified emissions data this week, with Thomson Reuters Point Carbon predicting a 4.3% decline. Carbon prices will also likely seek further direction from German power, although the overall outlook is neutral.
Adapted from press release by Katie Woodward
Read the article online at: https://www.worldcoal.com/coal/31032014/drummond_coal_exports_increase_surplus_673/
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