October 12, 2008

Canadian coal miners plunge as coal price fall

Reuters reported that Fording Canadian Coal Trust's units fell 16 % with rival coal miners also dropping as coal prices plunged in Europe and the United States.

As per reports, Units in Fording, which owns 60% of the Elk Valley Partnership, the world's No 2 exporter of metallurgical coal, fell CAD 15.80 to CAD 81.70 on the Toronto Stock Exchange on volume of 1.58 million units, more than double the average daily volume over the past three months.

The report added that shares in other coal producers were also hit. Western Canadian Coal Corp. dropped 96 Canadian cents, or 11% to CAD 7.21 a share, while Grande Cache Coal Corp fell 16% or CAD 1.36 to CAD 7.21 a share.

European benchmark coal plunged as much as USD 25 a tonne to below USD 200, which sent US benchmark coal falling by USD 20 a tonne.

The price for metallurgical coal, which is crucial for making steel, had surged this year on burgeoning demand while flooding in Australia cut supplies.