Thermal coal prices dived across the board in the week ending Friday Feb 20, with globalCOAL NEWC index sinking 5.17%, down from $US80.28/t the week previous, while South Africa’s Richards Bay price fell 7.58% with the globalCOAL RB index clocking in at a mere $US67.83/t.
Meanwhile, the globalCOAL DES ARA index, considered to be South African spot thermal-coal prices plus freight, is trading at $US76.25/t, far above Richards Bay’s price, but still took a 3.51% shave from last week’s price of $US78.93/t.
The price falls do not bode well for thermal-coal producers, with Goldman Sachs JBWere reporting last week that contract negotiations for the upcoming Japanese financial year were underway in Tokyo.
At the time, the investment bank said it was unaware of any settlements for new tonnage.
In the week ending January 23, the globalCOAL NEWC index hit $US88.19 a tonne.