The European-delivered CIF ARA physical thermal coal market stabilized Thursday morning after prices fell more than $2 the previous day as Colombian rail workers looked set to end their 24-day strike, which reduced the country's coal exports.
A 50,000 mt generic-origin DES Amsterdam-Rotterdam October cargo traded via the globalCOAL screen at $93.50/mt with exchange of futures for physical terms early in the trading session, on par with a similar trade seen the previous day, and 20 cents below Wednesday's close.
More than half of Fenoco rail workers voted Monday in an assembly to return to work while a local court ruled late Tuesday that the walkout was illegal.
Coal transportation is expected to resume Thursday, with outgoing Fenoco president Peter Burrowes confirming Wednesday afternoon that the assembly vote Monday to end the industrial action would allow for this.
The industrial action caused European spot prices to rally around $8 in just over two weeks, although sources said that this has been the only bullish factor in a market that remains oversupplied on unchanged demand.
Fenoco transports coal from major Colombian coal producers Drummond, Glencore's subsidiary Prodeco and Goldman Sachs affiliate Colombian Natural Resources, which account for about 53% of the country's thermal coal exports.
