Coal news and updates

Most US over-the-counter thermal coal spot prices closed at or near their lowest levels of the year on Tuesday, as lower overall power demand led to a 10% month-on-month decline in coal-fired generation, according to Bentek Energy.

 

Coal-fired generation has fallen from September by 274 GWh/d, or 10%, in the PJM, MISO, SPP, CAISO, ISO-NE, NYISO and ERCOT regions, Platts unit Bentek said Tuesday in its daily US Power Burn report.

 

Natural-gas burn in the seven ISOs is also down so far this month, averaging 1,540 GWh/d, 127 GWh/d below September's average, said Bentek.

 

"Because coal generation decreased at a faster rate than did gas generation and total load, coal's market share fell by 1%," Bentek said.

 

CAPP COAL PRICES CLOSE LOWER

 

Both barged and rail-delivered (CSX) CAPP coal spot contracts were seen trading in the physical market on Tuesday, with prices dropping 20-65 cents/st from Monday.

 

In CAPP barge, November traded at $51/st for five barges/month. The price was assessed the same, down 65 cents/st. This is the lowest level for the front month contract since September 5, 2013, when the price closed at $50.85/st.

 

Separately, CSX physical November traded at $53/st and at $52.75/st, each for one train. The price was assessed at $52.75/st, down 20 cents/st.

 

In the CAPP coal swap market, CSX Q1 2015 traded at $54.50/st for 10,000 st/month.

 

CSX financial Cal 2016 traded at $59/st for 5,000 st/month.

 

POWDER RIVER BASIN SPOT EDGES HIGHER

 

PRB 8,800 physical November traded at $10.80/st for one train twice, before trading at the offer of $10.85/st for one train at the close. The last offer was seen at $10.95/st with no bid. Platts assessed the price at $10.85/st, up 5 cents/st.

 

Further out, PRB 8,800 financial Q2 2015 over Q3 2015 traded at minus 40 cents/st for 5,000 st/month.

 

PRB 8,800 financial Q3 2015 over Q4 2015 traded at minus 35 cents/st for 5,000 st/month and 10,000 st/month.

 

 

Source: Platts