The European-delivered CIF ARA physical thermal coal market firmed Wednesday morning, as it traded at a higher level for the first time in eight days.
A 50,000 mt generic-origin December DES-Rotterdam cargo was sold between two northwest European utilities via the globalCOAL screen at $86.25/mt, the highest trade this week.
The deal was $1.30 above Platts 90-day assessed price of $84.95/mt Tuesday, as well as $1.50 higher than similar December trades carried out Monday and Tuesday.
Market sources cited higher API2 (CIF ARA) swaps as the primary drivers, with Marex Spectron saying in its daily report that some support had been gleaned from reduced renewable energy use across Northern Europe, which had resulted in an increase in coal burn.
Trading sources have been noting that European market fundamentals remain bearish, with stocks at ports containing around 9 million mt of coal, reducing the need to restock for winter, amid continued oversupply throughout the global seaborne market.
