I had to look hard for a bad news story, most news on coal...

I had to look hard for a bad news story, most news on coal recently is not all that bad.... eg:

"South Korea's Jan coal imports from Australia's Newcastle port double from Dec"
from ... http://www.platts.com/latest-news/coal/perth/south-koreas-jan-coal-imports-from-australias-27887462


the bad news is falling demand from emerging markets (but with alot of news on gas price crunch etc coal should be flavour of the month):

http://www.ft.com/cms/s/0/1d057db0-8aa4-11e3-9465-00144feab7de.html#axzz2sFAUzQsx

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EM sell-off hits thermal coal

By Neil Hume in London

Thermal coal prices slid to a 14-week low on concerns the sell-off in emerging markets will hit demand from utilities in countries such as India and Turkey.

Thermal coal is seen by many analysts as the commodity most closely correlated to growth in emerging economies because it is the cheapest fuel source for power stations.

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The price of South African coal, as assessed by Argus/IHS McCloskey, has fallen by more than 3 per cent over the past week to $79.47 a tonne – its lowest level since late October – as fears of weaker demand from emerging markets have taken hold.

The thermal coal price has dropped by a third over the past four years because of sluggish demand in Europe and rising supply from countries such as Australia and Indonesia.

Emerging market demand has been one of the few bright spots. However, weaker local currencies, which push up import prices and make commodities more expensive, could potentially affect demand.

Traders said the absence of Chinese buyers from the market because of the Lunar New Year was also weighing on prices. “The fall is mainly due to the emerging market turmoil but there are also nagging concerns about China,” said one market participant.

Chinese coal consumption rose by just 2.6 per cent in 2013, one of its lowest growth rates in recent years, according to Reuters, as the economy slowed and new environmental regulations started to bite.

The turmoil in emerging markets is also threatening the one area of strength in the European thermal coal market – Turkey, where demand has been growing strongly over the past couple of years.

Coal delivered into the Turkish port Iskenderun is currently trading at $99, according to Argus/HIS McCloskey – a premium of about $20 to the price in Europe. The rise has been triggered by Turkish utilities replenishing their coals stocks following unusually cold winter weather.

But with the local currency down 5.4 per cent against the US dollar this month, analysts are worried the premium could fall back to $10, its longer term average.

“This is certainly something to watch,” said Paolo Coghe, analyst at Société Générale.

Overall, thermal coal prices in Europe have been trending lower. After reaching $87 a tonne in mid December, coal delivered to the main European terminals of Amsterdam-Rotterdam and Antwerp (ARA) has fallen to $82 a tonne, according to Argus/HIS McCloskey.

Traders said stockpiles were healthy because of the mild winter in Europe, while the market was bracing for the return of supplies from Colombia.

Supplies from the world’s fourth-largest source of seaborne thermal coal have been disrupted by new environmental rules on ship loading. These have forced Columbia’s second-biggest miner, Drummond, to halt sales. However, reports this week claimed Drummond will have its mandatory conveyor belt ready before the end of March.