The mostly quiet NYMEX barge (12,000 Btu/lb, 1.67 lb SO2/MMBtu) coal term market has picked up with deals for delivery this year and into the next that show prices flat and staying near current values through 2018.
AEP, the largest consumer of CAPP barge coal, has awarded contracts off its recent RFP that called for up to 290,000 st for delivery between October and December and up to 1.375 million for delivery between January and December 2018.
Sources said larger producers along the Kanawha River, particularly Alpha Natural Resources, were able to be more aggressive with pricing and offer a discount to lock in significant tonnage.
Sources Wednesday said deals were awarded under $55/st through 2018 delivery. One CAPP producer noted its offer of near $54.75/st was declined and the winning offer was likely south of $54.50/st. Other producers made offers as high as the $60/st range.
Sources also said AEP took fewer volumes than originally solicited for Q4 this year.
S&P Global Platts last assessed NYMEX-quality coal on Friday at $55/st FOB barge for Q4 2017 delivery.
Producers and utilities heard pricing was "mostly flat" for both contract teams, with no meaningful premium put on Q4 despite an overall tighter CAPP thermal market.
Sources said traders have come into the CAPP barge market to buy tons headed to port for blending into a stout export market, but while near-term CAPP 12,500 Btu/lb rail prices has seen a boost into the low $60/st range because of seaborne demand, NYMEX barge values have remained mostly unchanged.
