European-delivered CIF ARA thermal coal prices Friday rebounded from two-month lows after a higher-priced November cargo traded at $89.30/mt, 35 cents higher than last trade Thursday.
The deal involved a 50,000 mt November DES Amsterdam-Rotterdam cargo traded through London Commodity Brokers with exchange of futures for physical terms attached, which sources said was between two Northwest European utilities.
Participants attributed the higher trade to a jump in the API2 (CIF ARA) paper market, which rose during the session on bullish crude oil prices and a stronger euro against the dollar after hitting six-week lows this week.
"Sellers are not willing to give much away on the [traded] basis. If you compare yesterday's traded discount at $2.35/mt [below the equivalent paper contract] in a falling market to today's $2/mt discount in a rising one, I would say the levels are fairly equitable between the two of them," a Northwest European utility trader said.
He added that absolute traded prices on the European-delivered spot market are "more a function of paper" than of wider coal market fundamentals.
Market players commented that it is not clear whether CIF ARA prices have reached a floor, with the utility source adding that he sees spot prices falling a further $5/mt due to oversupply in the Atlantic basin.
