A breeze blows fo reastern prices as summer burn approaches

摘要

Meaningful though not startling price relief might make it possible right now for a buyer interested in fairly substantial spot tonnage - say, 100,000 tons for delivery through the end of the year - to nip in below the 50 dollars/ton mark for high-quality Central Appalachian rail coal. That suggests pretty strong movement in favor of the buy side during the past few weeks. "We are seeing some definite erosion of the pricing and some more supply available than in the previous 12 months or so," one prolific buyer told U.S. Coal Review. "Within the last month or so, you were getting the feeling that things were coming off a little bit. I think now they're definitely backing off a little." A "combination of things" conspired to provide buyers some relief, a source said. "I think there is some supply that's gradually found a way to get into the market. People, with these kind of prices, look for all the alternatives they can possibly muster," he said, adding also that no unusual weather has occurred to help to eat up incremental tonnage being squeezed out by a few producers. "I think the railroads are getting a little bit better - don't mean to praise too much," the source said.