European Thermal Coal Dips on Warmer Temperatures

Reuters reported that European physical coal prices fell slightly on Thursday on the back of predictions for continued mild winter weather.

As quoted in the publication:

Coal cargoes for delivery in January to Amsterdam, Rotterdam and Antwerp (ARA) traded at $70.15 a tonne, down $1.75 from their last close, and API2 2015 coal futures were down $0.65 to $71.60 a tonne.

The fall in physical prices for this winter was a result of forecasts for another mild winter, which would result in low energy demand and coal burning by Europe’s utilities.

A utility trader told Reuters:

If this winter is a repeat of the last one, with largely mild days, then we’ll end up not using up our coal stocks, so new orders for 2015 will fall, pulling down prices.

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