European and Atlantic market was swept by price firming up after the commencement of Drummond strike. The impact was pronounced as it came as a surprise after much feet dragging by both parties to avoid it.
European-delivered CIF ARA physical thermal coal spot prices rallied over USD 1 per tonne 6 week highs. It is learnt that the price of CIF ARA thermal coal basis 6,000 kcal/kg NAR touched USD 76.30 per tonne up USD1 per tonne.
However market believes that a short-lived strike will not be sufficient to affect the balance of supply and demand much and the bubble might even out soon unless the strike spills over to for at least a month till the time winter buying commences. At the same time transactions slumped suddenly with traders hibernating waiting for clarity to emerge on the impact of strike.
The pacific market for the time being remained largely untouched by the tide.
Source – Strategic Research Institute