The depressed Central Appalachian rail (CSX) front-month contract traded three times Tuesday in the US over-the-counter thermal coal market, dropping the contract's price to its lowest total in almost nine years.
Brokers reported three CSX front-month (November) trades Tuesday at $35.50/st for one train (11,000 st), with one deal coming after the 2:30 pm EDT assessment deadline.
Platts assessed the contract price at $35.50/st, down $1.25 from Monday, based on the physical trades.
The last time the CSX front-month contract was assessed lower was January 29, 2007, when its price was $35.45/st.
The CSX front-month contract, which traded last at $38/st on Friday, has plummeted 14.5% in seven trading days since its rollover into November. The front-month contract for September was assessed at $41.50/st on its final day.
One broker said Tuesday that the contract price had dropped low enough to entice some buyers, as the market was "fishing out" the number needed to make deals happen.
There also were seven financial CSX trades Tuesday, which included four front-half 2016 deals clearing at $41.25/st, $41.10/st, $41.25/st and $41.50/st, respectively. Also seen in the financial market were a pair of CSX Q1 deals, the first clearing at $40.75/st and the second at $40.50/st, and a Q2 CSX trade clearing at $41.25/st.
There were no trades reported Tuesday for the CAPP barge front-month contract, which has not traded since September 18, when it changed hands at $42.50/st.
Platts assessed the contract price at $42.15/st, unchanged from Monday, based on a lack of market activity.
PRB 8,800 TRADES FOR 1 TRAIN
Out West, brokers reported a deal Tuesday for the Powder River 8,800 Btu/lb front-month contract at $11/st for one train (15,000 st). The contract last traded Friday at the same price.
Platts assessed the contract price at $11/st, unchanged from Monday, based on the physical trade.
There also were four trades seen Tuesday in the PRB 8,800 financial markets. The PRB Q1 contract cleared twice Tuesday, first at $10.70/st, then at $10.65/st, and the Cal 2016 cleared two times at $10.80/st.
