European physical coal prices dipped on Tuesday as mild temperatures in Europe led to weak demand.

By: | at 12:54 PM | Liner Shipping  

Cargoes for delivery in March to the ports of Amsterdam, Rotterdam and Antwerp (ARA) were bid at $79.20 per tonne on Tuesday afternoon, 30 cents below Monday’s close.

“We are entering a time of the year when demand is quite low and it can be difficult to get physical deals done,” a carbon trader at a European utility said.

“We are having a pretty mild winter and there is little reason to stock up (on coal) at the moment,” he added.

Meanwhile cargoes for export from South Africa’s Richards Bay Coal Terminal for March delivery were valued at around $77.90 a tonne on Tuesday, down $3.25 cents from Monday’s close.

Prices were under pressure as exports resumed this weekend following a week-long power outage at the world’s largest export coal terminal. Richards Bay will take seven weeks to clear a backlog in coal shipping following the disruption, the company said.

Meanwhile miner and trader Glencore Xstrata said on Tuesday its coal output was up 4 percent to 138.1 million tonnes in the year to the end of December 2013.

The increase was driven by growth at Prodeco, in Colombia, and at the firm’s Australian operations. (Reporting by Susanna Twidale and Nina Chestney; Editing by Pravin Char)


Be the first to comment on this article!

To avoid Spammers, we ask that you log in using your account. Free accounts have access to commenting.

Did you forget your password?

It happens...