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Front-quarter coal price may extend 9 month lows

Coal News - Published on Fri, 11 Jan 2019

Image Source: Bunkerist
Montel News reported that European coal front-quarter prices may extend current nine-month lows this week, with limited generation demand and ample supply weighing heavily on the market. The API 2 front-quarter contract traded last down USD 1.10 from Friday’s close at USD 81.30 per tonne, while the front year was USD 0.80 lower at USD 79.50 per tonne, on Ice Futures.

The former contract earlier reached its lowest level since April last year, on a rolling basis, of USD 81.20 per tonne .

Mr Hans Gunnar Nåvik, senior analyst with Oslo-based StormGeo Nena Analysis said that “A general driver across the northern hemisphere has been the weather, noting the relatively mild winter so far had been a “heavy burden” on coal and related energy markets.

Indeed, competing gas prices have also come under significant pressure, with the Dutch TTF front-month contract seen last down nearly 5% from Friday’s close, at EUR 21.85/MWh.

According to forecaster SMHI, mild temperatures “will dominate” this month, with average temperatures close to normal, while there is also expected to be “good wind output”.

As a result, there was likely to be a lower call on fossil-fuelled power units, participants said.

A coal broker also pointed to the bearish impact of thin physical-market liquidity.

Source :

Posted By : Rabi Wangkhem on Fri, 11 Jan 2019
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