Mon, September 18, 2017 10:49 am

From this week’s Week Ahead Flash:

The major global thermal indices were white hot last week with the API 2 prompt month index at its highest level since Dec 3, 2012 on Thursday at $93.60/MT, while prompt month index prices for API2 and Newcastle hit 2017 highs. Newcastle hit its peak last Wednesday at $98.75/MT, the highest level since Nov 11, 2016, and the API4 was at $96.80/MT on Thursday which is the highest level since Nov 10, 2016. Prices have been fueled by fears of low inventories in Europe, China and India as the typical stocking season approaches; nuclear plant safety checks have caused outages which are expected to boost coal demand this winter also helped move prices. globalCOAL’s thermal platform indicated strong interest on Tuesday with Oct ‘17 trading at $102/MT FOB Newc for 25K MT and bids/offers held steady at the level for the remainder of the week. Newc prices have been driven higher by strong Asian appetite, particularly in China where spot cargoes were reported in tight supply at northern ports. Limited rail capacity and increased demand from inland power utilities to fulfill pre-winter stock building were reported to be the main cause. The most recent data from sxcoal.com showed thermal coal stocks at key power plants in China ended August 27 at 13 days of use, the lowest figure since Sept 10, 2016. The market in China is expected to remain robust as the maintenance outages on Daqin coal line will further reduce supplies to northern ports, forcing buyers scrambling to secure cargoes before the downtime, and utilities will continue to stockpile coal for winter consumption.

Other headlines this week:

2018 Domestic Met Coal Negotiations Weak Out of the Gate

Indonesian Coal Producers Take Hit on New Mining Rules

Met Market Softens

Late Summer Warm Up in Eastern US

Natgas Markets Shrug Off Large Injection

Global Crude Steel/This Week

Contact Steve Ristevski at sristevski@doyletradingconsultants.com or (212) 520-2774 to see more.