Americas: US over-the-counter coal products lower in high-volume session

Coal prices continued to push lower in US over-the-counter trading on Wednesday. In improved volume, front-month contracts for NYMEX look-alike,Powder River Basin and CSX rail delivered physical coal all declined.

    
Front-month look-alike traded at $59.75/st, $1.35 below Tuesday's Platts assessment; front-month PRB 8,800 traded at $14.30, 20 cents below the prior assessment; and front-month CSX traded at $66.00/st, down 50 cents.

    
Market sources said OTC markets opened lower on Wednesday, with selling pressure accelerating into the New York afternoon.

    
Front-month trading in look-alike contracts increased on Wednesday.

    
October 2010 traded at $59.75/st in the afternoon session for five barges.

    
November 2010 traded at 60.35/st for five barges twice, $60.50/st for five barges four times and for 10 barges, and at $60.25/st for five barges twice.

    
Platts assessed November 2010 at $61.50/st on Tuesday. December 2010 look-alike traded three times at $61.00/st for 10 barges.

    
Into 2011, Q1 traded at 61.75/st for five barges, and in a spread over Q2 2011 at a discount of $2.35/st for five barges twice. In the outright trade,Q1 priced $1.25/st lower than Tuesday's Platts assessment.

    
Q2 2011 traded at $64.45/st for five barges, $64.25/st for five barges,$64.15/st for five barges twice and reportedly at $65.00/st for five barges.

    
Q2 also traded in a spread over Q4 2011 at a discount of $4.75/st for five barges. Platts' prior Q2 2010 assessment stood at $65.45/st.

    
Q3 2011 traded in a spread over Q4 2011 at a discount of $2.35/st for five barges three times. Q4 2011 traded at $69.00/st for five barges, $68.85/st for five barges twice, and at $68.75/st for five barges twice.

    
Front-half 2011 traded in a spread over back-half 2011 at a discount of $4.25/st for five barges. Calendar year 2011 traded at $66.25/st for five barges, $65.50/st for five barges and in a spread over CY 2012 at a discount of $8.25/st for five barges three times.

    
CY 2012 traded once at $74.50/st for five barges.

    
PRB 8,800 physical October 2010 traded once Wednesday at $14.30/st for the deliver of one train. In a physical over financial spread trade, Q4 2010 traded at $14.30/st for the delivery of two trains over 30,000 st.

    
CSX physical traded once in the October 2010 contract at $66.00/st for the delivery of one train.

    
In the paper market, CSX swaps traded in a spread of front-half 2011 over back-half 2011 at a discount of $4.25/st. Q1 2011 CSX financial traded in a spread over Q1 2011 look-alike at a premium of $4.60/st, and November 2010 CSX financial traded over December 2010 look-alike at a premium of $4.50/st.