The European-delivered CIF ARA thermal coal spot market traded in line with recent deals Thursday, as traders said supply remains comfortable amid stable coal fundamentals.
A 50,000 mt October DES Amsterdam-Rotterdam generic-origin cargo traded at $94/mt on the globalCOAL platform with exchange of futures for physical terms attached and was said to have involved two Northwest European utility traders.
Sources said that following the resolution of a 24-day Colombian rail strike, which had restricted coal exports from the country and caused producers Drummond and Prodeco to declare force majeure on several vessels, Atlantic supply looked ample.
Coal shipments for October-delivery in the European spot market had traded as high as $96/mt during the industrial action but, after the strike was declared illegal on August 14, spot cargo transactions fell to within the $93.50-94/mt range.
A Switzerland-based trader said that there is currently more downside in Atlantic spot prices, citing widespread availability of coal for October and November delivery and more selling interest pushing down on levels.
"The market is very difficult to read and people are waiting to understand what is going on," he said. "By September we will have some more activity and people will be more confident in taking a position.
However, the trader added that he was "not positive for Q4" as European buyers appeared to be "well stocked".
A source at the EMO Dry Bulk Terminal in Rotterdam reported unchanged week-on-week stocks of around 2 million mt Wednesday, while a source at OBA Bulk Amsterdam said that its coal stocks are at around 2.4 million mt, slightly higher than two weeks ago.
