Thu Sep 20, 2012
PERTH, Sept 20 (Reuters) - Australia's thermal coal price benchmark dropped under $90 per tonne for October deliveries this week, while prices for later deliveries also remained weak due to scarce Chinese demand.
Australia's Newcastle spot index for the week closed at $89.56 per tonne on Wednesday, down from $91.14 per tonne last week, according to data provided by online trading platform globalCOAL.
Some producers are holding on to supplies in hopes that prices will increase instead of selling at a loss, sources said.
"You sell if you have to, but a lot of producers have costs around $90 per tonne," one Australia-based source said.
"There's buyers out there, it's just not the right price."
A 35,000 tonne cargo for October delivery traded at $86.50 per tonne, while a 25,000 tonne November cargo traded at $90 per tonne.
Three parcels of Newcastle coal for December traded this week, including a 25,000 parcel for December delivery for $92 per tonne and two other 25,000 parcels for $91.75 per tonne.
Bids for November deliveries of 6,000 kg/kcal Newcastle coal were only attracting bids under $90 per tonne, while bids for lower quality 5,500 kcal/kg coal were as low as $72 per tonne, sources said.
The Chinese weekly benchmark thermal coal prices on the Bohai Bay Rim index rose slightly to 633 yuan ($100)a tonne FOB from 630 yuan last week.
China, the world's largest producer and consumer of coal, imported 20.44 million tonnes of coal in August, down 0.7 percent compared to the same period last year.
Manufacturing in China contracted for the 11th month in a row in September, according to a private sector survey of factory managers that indicated the world's second largest economy remains on track for a seventh quarter of slowing growth.
Japanese utilities, which buy most of their coal volumes directly from producers in several year-long contracts are expected to settle annual contracts beginning in October.
Sources said negotiations between the utilities and Xstrata, which typically sets the price precedent for Japanese coal contracts, will continue on Sept. 24, after having unsuccessful negotiations earlier this month.
The price for the October contract will likely settle between $95 per tonne and $100 per tonne, with around $97-$97.50 per tonne the most likely outcome, sources said.
($1 = 6.3093 Chinese yuan)
(Reporting by Rebekah Kebede; Editing by Himani Sarkar)
PERTH, Sept 20 (Reuters) - Australia's thermal coal price benchmark dropped under $90 per tonne for October deliveries this week, while prices for later deliveries also remained weak due to scarce Chinese demand.
Australia's Newcastle spot index for the week closed at $89.56 per tonne on Wednesday, down from $91.14 per tonne last week, according to data provided by online trading platform globalCOAL.
Some producers are holding on to supplies in hopes that prices will increase instead of selling at a loss, sources said.
"You sell if you have to, but a lot of producers have costs around $90 per tonne," one Australia-based source said.
"There's buyers out there, it's just not the right price."
A 35,000 tonne cargo for October delivery traded at $86.50 per tonne, while a 25,000 tonne November cargo traded at $90 per tonne.
Three parcels of Newcastle coal for December traded this week, including a 25,000 parcel for December delivery for $92 per tonne and two other 25,000 parcels for $91.75 per tonne.
Bids for November deliveries of 6,000 kg/kcal Newcastle coal were only attracting bids under $90 per tonne, while bids for lower quality 5,500 kcal/kg coal were as low as $72 per tonne, sources said.
The Chinese weekly benchmark thermal coal prices on the Bohai Bay Rim index rose slightly to 633 yuan ($100)a tonne FOB from 630 yuan last week.
China, the world's largest producer and consumer of coal, imported 20.44 million tonnes of coal in August, down 0.7 percent compared to the same period last year.
Manufacturing in China contracted for the 11th month in a row in September, according to a private sector survey of factory managers that indicated the world's second largest economy remains on track for a seventh quarter of slowing growth.
Japanese utilities, which buy most of their coal volumes directly from producers in several year-long contracts are expected to settle annual contracts beginning in October.
Sources said negotiations between the utilities and Xstrata, which typically sets the price precedent for Japanese coal contracts, will continue on Sept. 24, after having unsuccessful negotiations earlier this month.
The price for the October contract will likely settle between $95 per tonne and $100 per tonne, with around $97-$97.50 per tonne the most likely outcome, sources said.
($1 = 6.3093 Chinese yuan)
(Reporting by Rebekah Kebede; Editing by Himani Sarkar)
No comments:
Post a Comment