European 2014 Coal Drops to Record as Colombian Talks to Start
European coal for next year fell to a record as workers at Colombia’s Cerrejon mine are set to start talks aimed at ending a strike that has reduced supply from South America’s biggest producer of the fuel.
Thermal coal for delivery in 2014 to Amsterdam, Rotterdam or Antwerp dropped as much as 50 cents, or 0.5 percent, to $97.90 a metric ton, the lowest level since the contract started trading in January 2010, according to broker data compiled by Bloomberg. It traded at $98.25 a ton at 2:45 p.m. London time.
Talks between striking workers and management at the mine will start at 2 p.m. local time, Igor Diaz, head of the Sintracarbon union, said today.
Supply disruptions in Colombia, including the strike at Cerrejon, its largest mine, have affected 84 percent of the country’s thermal coal exports, according to Michael Hsueh, an analyst at Deutsche Bank AG. The country exported 79.4 million tons of coal last year, of which 55 percent went to European Union countries, he said in a Feb. 15 report.
Coal for delivery in March fell for a fourth day, dropping 0.7 percent to $88.90 a ton.
Bloomberg tracks broker data from ICAP Plc, GFI Group Inc., Marex Spectron Group Ltd., Credit Suisse Group AG, IHS McCloskey, Tradition Financial Services and Tullett Prebon Plc.
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