What gives? CAPP, NAPP coal offerings inflated versus transparent market

摘要

One substantial buyer said he has been offered Northern Appalachian term coal, recently, at a 15-18 dollars premium to the OTC for future years. The source said CAPP coal offered to him has been similarly inflated versus the transparent market. What gives? "People are digging in their heels, the source said of the producers. "They're saying, 'I'm going to give you these numbers. If it's a premium to the OTC, so be it." Producers fear the potential impact of production impediments, the source said, and are unwilling to take business at price levels they deem too risky.