Global thermal coal market undergoes pangs of oversupply and poor demand. 2012 has been game changer with US emerging as potent supplier domestic energy demand being met by shale gas making coal mining redundant. However the vacillating global economy has seen changing dynamics depending on the cost saving potential of any source gaining precedence over any other factor.
European nations have been ever so conscious of adhering to environmental regulations have bulked to cost considerations. Malignancy of European debt crisis became widespread with even the strong economies of Germany and France shivering in the headwinds.
Approaching winter sets the market abuzz with stocking leading to hiked buying of both finished and raw material. Strangely amidst gloomy thermal coal outlook European buyers have enlivened with brisk buying of low NAR coal from Colombia and USA spurning expensive South African coal.
Europe has been an unexpected God send to US producers looking to compensate for a moribund domestic market. US coal continues to make its way across the Atlantic. Despite down API2 numbers selling continues with even USD 15-18 per tonne discount for high sulfur.
Colombian miners are feasting with hiked order from Europe. The current level is at USD 83 per tonne FOB Puerto Bolivar, up USD 3 per tonne from last week. In October, Colombia exported 6.69 million tonnes of coal. Europe received the lion's share of the volume - 5.10 million tonnes
Global thermal coal market undergoes pangs of oversupply and poor demand. 2012 has been game changer with US emerging as potent supplier domestic energy demand being met by shale gas making coal mining redundant. However the vacillating global economy has seen changing dynamics depending on the cost saving potential of any source gaining precedence over any other factor.
European nations have been ever so conscious of adhering to environmental regulations have bulked to cost considerations. Malignancy of European debt crisis became widespread with even the strong economies of Germany and France shivering in the headwinds.
Approaching winter sets the market abuzz with stocking leading to hiked buying of both finished and raw material. Strangely amidst gloomy thermal coal outlook European buyers have enlivened with brisk buying of low NAR coal from Colombia and USA spurning expensive South African coal.
Europe has been an unexpected God send to US producers looking to compensate for a moribund domestic market. US coal continues to make its way across the Atlantic. Despite down API2 numbers selling continues with even USD 15-18 per tonne discount for high sulfur.
Colombian miners are feasting with hiked order from Europe. The current level is at USD 83 per tonne FOB Puerto Bolivar, up USD 3 per tonne from last week. In October, Colombia exported 6.69 million tonnes of coal. Europe received the lion's share of the volume - 5.10 million tonne.
