Looks like the price of longer term thermal coal contracts in...

Looks like the price of longer term thermal coal contracts in Poland are already being marked down. The drop in thermal coal prices quoted in these contracts align with the sort of percentage drop that we are seeing in the ARA futures markets for the same years.

This article outlines what Bogdanka is currently dealing with.


Mining: Course Bogdanka UnderPressure, Market Afraid Himself DropPrices Coal

Created: Tuesday, December 8, 2015Source: PAP


fot. Maciej Dorosiński

Investors reacted negatively to the message Bogdankai of an annex to the contract for the supply of coal from one of the recipients


Bogdanka on Tuesday (December 8) sessions are covered by a strong drop for, the course has lost more than 8 percent. Investors reacted negatively to the company's Statement of the annex to the contract for the supply of coal from one of the recipients.They fear large declines in crude oil prices next year.

The h. 10.40 shares of Bogdanka cheaper by 8.4 per cent. to 35.68 zł. This is the lowest level since more than three months, close to historical lows.

- Yesterday Statement Bogdanka showed less than 6 percent. decline in the value of the contract with Elektrownia Połaniec. This shows roughly the scale of the fall in coal prices next year. Such a fall in prices expected - said Lukasz Prokopiuk, an analyst DM BOS.

Bogdanka said on Monday (December 7th) after a session about signing with Elektrownia Połaniec group GDF Suez Energy Poland addendum to the long-term coal sales agreement, which defines the conditions of supply for the years 2015-2016. The current value of the contract is lower by 5.71 percent. the values given in December 2014. The value of the whole contract after the conclusion of the annex is estimated at 3,124 billion zł net, at current prices.

Recently the company also signed an annex to the agreement with the Group Azoty Pulawy Nitrogen Factory. The validity of the contract was extended until the end of 2019 years. Also set new conditions for the supply of thermal coal in terms of prices and volumes. As a result of this amendment, the total value of the contract amounts to 859 million zł net, ie 5.6 percent. less than the value of the report of December 2014. - Another factor that appeals to the imagination are constantly declines in global commodity prices coupled with a strong dollar. It is even conceivable that the situation in the Polish mining industry will be a little better that the Coal Company will not sell out of inventory, for example. Will buy them Material Reserves Agency. If, however, the world's raw materials will continue to fall, and so far it seems that everything will fall in the near future, it will be continued pressure on coal prices in Poland and will not end with price reductions of 6 percent. - Pointed Prokopiuk.

- I'm here very much a pessimist - concluded the analyst.

On Tuesday, coal prices in Europe record lows. Contracts for the supply of coal in 2016 falling to below 45 USD / t, and for 2,017 years to $ 44 / tonne.


http://www.nettg.pl/news/132801/gornictwo-kurs-bogdanki-pod-presja-rynek-boi-sie-spadku-cen-wegla