Barge-delivered Central Appalachian thermal coal spot prices fell to fresh multi-year lows on Monday, pushing the discount to the CAPP rail (CSX) contract to its widest level this year.
The spot market was quiet with only one seen trade in the session. Fourth-quarter 2012 traded at $54.75/st for five barges and 10 barges. Platts assessed the price at $54.15/st, down $1.15/st, based on broker information. This last time the front-quarter contract was assessed below $54.15/st was March 15, 2010, when it was assessed at $53.35/st.
The front month was assessed at $52.60/st, down $1.35/st on Monday. The last time the front-month contract was assessed below $52.60/st was on March 10, 2010, when it was assessed at $52/st.
Notably, the spread against the CSX contract has widened to its widest level this year. The front-month CAPP barge contract was assessed at a $9.65 discount to the CSX contract. The prompt-quarter contract was assessed at a $7.95 discount.
A trader source attributed the significantly wide discount to the lack of liquidity in the barge spot market. The trader said the spot numbers do not make sense, as the spread between the Cal 2013 prices are trading a much lower discount.
Further out on the CAPP barge curve, downward pressure was most visible in the Q1 2013 contract, which traded in a range of $60.05-$59.10/st.
Q1 2013 traded at $60.05/st for 10 barges, at $60/st for five barges, at $59.90/st for five barges, at $59.75/st for five barges, at $59.25/st for five barges twice, at $59.20/st for 10 barges, and at $59.10/st for five barges. The price was assessed at $59.10/st, down $1.35/st.
A Q1 2013 put option with an exercise price of $60/st traded at $2.25/st for 20 barges, at $2.50/st for 10 barges, and at $2.75/st for 20 barges. The put option is "in the money" by 90 cents/st, based on our closing assessment of $59.10/st.
Q2 2013 traded at $62.50/st for 10 barges and five barges, at $62.20/st for 10 barges, and at $62.10/st for five barges. The strip was heard to have also traded at $62.25/st for five barges. The price was assessed at $62.25/st, down 65 cents/st.
Q2 2013 over Q3 2013 traded at minus $2.60/st for 20 barges, and at minus $2.75/st for five barges and 10 barges.
Cal 2013 over Cal 2014 traded at minus $7.25/st for 10 barges. The Cal 2013 contract was assessed at $63.40/st, down 70 cents/st.
CSX physical October was heard to have traded at $62/st for one train. The following bid-ask was framed at $62.10-$62.75/st. Platts assessed the price at $62.25/st, down $1/st.
CSX financial Q1 2013 traded at $62/st for 5,000 st. The physical price was assessed the same, down 85 cents/st.
CSX financial Q1 2013 over Q2 2013 traded at minus $2.25/st for 5,000 st twice. CSX financial Q2 2013 traded at $64/st for 5,000 st three times. The physical price was assessed at $64/st, down 30 cents/st.
CSX financial Cal 2013 traded at $65/st for 5,000 st twice. The physical price was assessed the same, down 50 cents/st.
Norfolk Southern 1%-sulfur Q4 2012 traded at $60.50/st for one train twice.
In the West, Powder River Basin 8,800-Btu/lb physical October traded at $8.60/st for two trains. The contract was heard to have traded at $8.50/st for one train. The price was assessed at $8.60/st, up 25 cents/st.
Source: PlattsBarge-delivered Central Appalachian thermal coal spot prices fell to fresh multi-year lows on Monday, pushing the discount to the CAPP rail (CSX) contract to its widest level this year.
The spot market was quiet with only one seen trade in the session. Fourth-quarter 2012 traded at $54.75/st for five barges and 10 barges. Platts assessed the price at $54.15/st, down $1.15/st, based on broker information. This last time the front-quarter contract was assessed below $54.15/st was March 15, 2010, when it was assessed at $53.35/st.
The front month was assessed at $52.60/st, down $1.35/st on Monday. The last time the front-month contract was assessed below $52.60/st was on March 10, 2010, when it was assessed at $52/st.
Notably, the spread against the CSX contract has widened to its widest level this year. The front-month CAPP barge contract was assessed at a $9.65 discount to the CSX contract. The prompt-quarter contract was assessed at a $7.95 discount.
A trader source attributed the significantly wide discount to the lack of liquidity in the barge spot market. The trader said the spot numbers do not make sense, as the spread between the Cal 2013 prices are trading a much lower discount.
Further out on the CAPP barge curve, downward pressure was most visible in the Q1 2013 contract, which traded in a range of $60.05-$59.10/st.
Q1 2013 traded at $60.05/st for 10 barges, at $60/st for five barges, at $59.90/st for five barges, at $59.75/st for five barges, at $59.25/st for five barges twice, at $59.20/st for 10 barges, and at $59.10/st for five barges. The price was assessed at $59.10/st, down $1.35/st.
A Q1 2013 put option with an exercise price of $60/st traded at $2.25/st for 20 barges, at $2.50/st for 10 barges, and at $2.75/st for 20 barges. The put option is "in the money" by 90 cents/st, based on our closing assessment of $59.10/st.
Q2 2013 traded at $62.50/st for 10 barges and five barges, at $62.20/st for 10 barges, and at $62.10/st for five barges. The strip was heard to have also traded at $62.25/st for five barges. The price was assessed at $62.25/st, down 65 cents/st.
Q2 2013 over Q3 2013 traded at minus $2.60/st for 20 barges, and at minus $2.75/st for five barges and 10 barges.
Cal 2013 over Cal 2014 traded at minus $7.25/st for 10 barges. The Cal 2013 contract was assessed at $63.40/st, down 70 cents/st.
CSX physical October was heard to have traded at $62/st for one train. The following bid-ask was framed at $62.10-$62.75/st. Platts assessed the price at $62.25/st, down $1/st.
CSX financial Q1 2013 traded at $62/st for 5,000 st. The physical price was assessed the same, down 85 cents/st.
CSX financial Q1 2013 over Q2 2013 traded at minus $2.25/st for 5,000 st twice. CSX financial Q2 2013 traded at $64/st for 5,000 st three times. The physical price was assessed at $64/st, down 30 cents/st.
CSX financial Cal 2013 traded at $65/st for 5,000 st twice. The physical price was assessed the same, down 50 cents/st.
Norfolk Southern 1%-sulfur Q4 2012 traded at $60.50/st for one train twice.
In the West, Powder River Basin 8,800-Btu/lb physical October traded at $8.60/st for two trains. The contract was heard to have traded at $8.50/st for one train. The price was assessed at $8.60/st, up 25 cents/st.
Source: Platts