The rail-delivered (CSX) Central Appalachian thermal coal spot price followed the European market lower Friday, while the Cal 2015 swap was seen trading in large volume after the 2:30 pm EDT Market-on-Close.
CSX physical May closed lower than the previous session as the European market retraced, with market participants attributing the pullback there to mostly bearish fundamentals.
Meanwhile, CSX financial Cal 2015 was seen trading five times for a total of 30,000 st/month, or about 18% of open interest on ClearPort, after the Platts MOC. The contract traded at $64.80/st and $65/st.
Unlike the CSX coal forward curve, which is in contango from June out to 2016, Barclays research analyst Shiyang Wang said that the NYMEX natural gas forward curve remained backwardated from calendar 2014 to calendar 2016.
"The forward curve remains backwardated from calendar 2014 to calendar 2016, with calendar 2014 trading almost 40 cents above 2016 on the week. Given our expectations for future long-term demand growth, we believe fundamental factors should support a contango for calendars 2015 and beyond," Wang said in a research note released on Friday.
In Friday's coal trading session, CSX physical May traded at $62.75/st for one train. The price was assessed 25 cents lower at $62.75/st.
CIF ARA SPOT MARKET EDGES LOWER
Atlantic physical thermal coal spot prices fell Thursday from two-week highs following a downturn in coal swaps prices, market participants said.
The CIF ARA-FOB CSX spread, or implied transportation spread, narrowed to $14.75/mt from $14.80/mt Wednesday.
US East Coast thermal coal (6,500 kcal/kg NAR 1% sulfur) was assessed 25 cents lower at $82.25/mt.
