Thermal coal prices in the US continued to press higher Wednesday, extending gains reported on Tuesday as over-the-counter markets matched gains in their natural gas and Atlantic coal counterparts. In the Central Appalachian barge market, Q2 2011 traded at $73.75/st, 75 cents above the prior Platts assessment. Rising Q2 prices pushed the front-end of the CAPP barge curve back into contango, according to Platts figures.
Prices were higher across the curve despite thin volumes. One source said trading was non-existent in the morning session, but slight interest developed in afternoon.
Volumes in the CAPP rail (CSX) market remain depressed, with physical prices floating higher by about $1.40/st in 2011 quarters. CAPP rail (CSX) swaps saw some limited interest in 2011 spread trades.
Powder River Basin 8,800-Btu/lb prices continued to press higher. March traded at $13.95/st, 50 cents above Tuesday's Platts assessment.
In Europe, Platts assessed the daily 90-day CIF ARA price at $116/mt, up $1.50/mt, and the FOB Richards Bay at $115.50/mt, up 50 cents/mt.
Volume across OTC coal products was down Wednesday. In the CAPP barge market, Q2 traded at $73/st and $73.75/st, each for five barges. Q4 2011 traded once early in the session at $75.50/st for five barges, but its bid/ask spread was pushed $2/st higher later in the day.
In the CAPP rail (CSX) swap market, March traded outright at $72/st and $73.25/st. March also traded in spread deals over Q3 2011 at a discount of $4.65/st and $4.50/st. Physical markets were shut out.
March PRB 8,800 physical traded once at $13.95/st for the delivery of two trains.
