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Wednesday, 19 August 09
STEAM COAL PRICES ARE SINKING - THE GERMAN COAL IMPORTERS ASSOCIATION


COALspot.com (German): Oversupply in the World Market. In 2Q 2009  the steam coal prices sank massive in comparison to the previous years quarter.

The Rotterdam quotation (spot) for steam coal declined from 112 euro / TCE in 2008 to 56 euro / TCE and halved. There with the difference between the German production costs and the world market prices totalled to around 100-120 / TCE again.

Also the prices for CO2 certificates halved in comparison to 2008 and amounted on average at about 14 euro / ton CO2.  The market for CO2 certificates is very liquid and the expected weak economic development for the years 2009 and 2010 might cause to a sufficient supply.

The international freight rates sank heavily in the comparable time span, too. The freight rates (capesize spot, route Richards Bay - ARA) decreased from US$ 47 / ton in 2Q 2008 to averaged US$ 14 / ton in 2Q 2009.

In quarterly comparison the German hard coal imports were downward by 16%  (2Q 2008 / 2Q 2009).

Coke imports were stable whereas coking coal imports decreased by 37% and steam coal imports by 13%. Altogether 8.3 million ton of hard coal were imported in 2Q 2009. The biggest quantities delivered came from Colombia, Russia and South Africa.

As hard coal at first is an industrial energy, the supply suffered in particular from the general weak industrial demand for electricity and from the steel crisis - Reported by Verein der Kohlenimporteure e.V.



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