|
U.S. Coal Review
Energy Publishing's Weekly Digest of U.S. Coal Market Prices and Activity
ISSUE #1652 JUNE 25, 2007
National News... The Markets.STB to hold public
hearing on rail SAIL still needs coal;
transportation of might make purchase soonenergy resources Who will be the first Asian con- met purchase in the U.S. will promptsumer to take a sizeable chunk of other foreign buyers to follow suit,The Surface Transportation Board metallurgical coal from the U.S.? causing the price to rise even higher.will conduct a public hearing on July More importantly, when will that po- "They are short of coal and uncom-18 in Kansas City, MO as a forum to tential price-boosting deal take place? fortable, but there is this fear of start-examine issues related to the effi- Maybe Steel Authority of India. ing a price run-up like we saw inciency and reliability of railroad SAIL, which recently entertained of- 2004 and 2005," a source said. "Notransportation of resources critical to fers from at least three U.S. metallurgi- one wants to be the first to dive intothe United States' energy supply, in- cal coal producers before choosing not the deep end of the pool."cluding coal, ethanol and biofuels. to buy, reportedly is considering anoth- But someone is bound to take theThe public hearing will begin at 9 er offer from Alpha Natural Resources. plunge. and fairly soon if a promi-a.m. in the Ground Floor Conference A decision on whether to buy the nent source's hunch is correct. PortRoom of the Richard Bolling Federal coal is expected within a few weeks, problems persist in Australia, CanadaBuilding, 601 East 12th Street, according to a source. The volume has had its share of difficulties withKansas City, MO. asked for is expected to total about 1 shipments and China is now stingyThe STB officially announced the million metric tonnes. with its coal. With the lost suppliesJuly 18 hearing in the proceeding enti- "The only bid accepted in the first from those sources, an increasingtled Rail Transportation of Resources go around was Alpha," the source number of Asian buyers have begunCritical to the Nation's Energy Supply, said. "They threw out the other bids talking with U.S. suppliers.STB Ex Parte No. 672, in a decision for technical reasons. They waited it "I actually thought we would haveissued to the public on June 6. out because of the freight rates, and seen a buy by now," the source said.That decision established due dates now they are down $5 or $6. Maybe "I'm beginning to think it will be July.for those wishing to speak at the now they will buy." If I was a buyer, I'd be waiting for thathearing to advise the agency of their Steelmakers with dwindling coal queue (of ships in Australian ports) tointent to participate and to request a inventories appear to be running drop off and the freight market to drop.time allotment, and for the submis- short of options when it comes to It's leaking off now, but not by much.sion of written testimony. The June 6 coal purchasing. Yet, even as stock- When it gets to a point when they thinkdecision is available for viewing and piles drop further, buyers from vari- the freight is as low as it can get, then Idownloading via the STB's Web site ous parts of Asia and India are reluc- think they will pull the trigger. So far itat http://www.stb.dot.gov. tant to do a deal. is a wait-and-see approach."A printed copy of the agency's de- The concern is not only high freight It appeared that SAIL was set tocision also is available by contacting rates; it's also the possible undesired buy 1 million-plus tonnes of U.S.ASAP Document Solutions, 9332 consequence of pushing the price of coal a few weeks ago, but freight is-Annapolis Rd., Suite 103, Lanham, top-quality met coals to well above sues spoiled the deal. Its return couldMD 20706; calling 202-306-4004, or $105/metric tonne FOB port. The pre- provide the needed trigger for U.S.e-mailing: asapdc@verizon.net.q vailing belief is that the first significant Continued on page 2
Page 12 - Utility price markers Page 19 - Northern CoalfieldsIn Today's Issue: Page 15 - Southern Coalfields Page 23 - Western Coalfields- 1 -Indonesia said to be falling a little SAIL still needs coal...Continued from page 1short in coal exports suppliers.The focus is centered primarily on ing patterns. Sources believe other companiesAustralia's port congestion and rail "Indonesia needs to carry the ball could step up alo... [download for more]
|
