Central Appalachian thermal coal prices fell for a fourth consecutive session on Wednesday, pushing front-year calendar prices to multi-year lows.
Both the CAPP barge physical and rail (CSX) swap contracts traded lower in a mid-afternoon selloff, pushing front year calendar prices to levels not seen since December 24, 2009.
In CAPP barge, the Q4 2013 strip traded late in the day at $51.85/st, down from an intraday high of $52.75/st. Q4 2013 over Cal 2014, which traded at minus $4.90/st in the morning session, pushed the Cal 2014 price lower.
In CSX swaps, the Q4 2013 traded late in the session at $53.65/st, down from $54.75/st, earlier in the day. Q4 2013 over Cal 2014 traded at minus $5/st in the session.
Platts assessed the CAPP barge Cal 2014 price at $56.75/st, down 70 cents/st, the lowest price for a front year contract since December 24, 2009, when the price was $53.50/st. CSX physical Cal 2014 was assessed at $58.75/st, down $1.25/st. This is also the lowest level since December 24, 2009, when the price was $57.05/st.
PIRA Energy Group, in its weekly coal market recap for the week ended August 25, released on Wednesday, said that US coal stocks continue to decline seasonally, despite varying weather impacts and sub-$4/MMBtu natural gas prices. NAPP (Northern Appalachian) and SPRB (Southern Powder River Basin) consuming regions tend to have lower relative inventory levels, while the Southeast, Northeast, and West Pacific regions remain well above normal target levels. PIRA expects that inventory builds will be more limited this fall as coal production cuts limit resupply levels.
ATLANTIC MARKET EDGES LOWER
In the Atlantic export market, DES Amsterdam-Rotterdam November 50,000 mt multi-origin (excluding US) traded at $76/mt on the globalCOAL screen. This is down 25 cents/mt from Tuesday?s November trade price.
US East Coast thermal coal (6,500 kcal/kg NAR 1% sulfur) was assessed down 50 cents/mt to $73/mt.