Mini-rash of 'non-Massey' trades prompts speculation in OTC coal market

摘要

While over-the-counter coal trading last week was, for the most part, unremarkable, one interesting new development is a mini-rash of trades specifying that coal not originate from Massey Energy mines. On April 5, two CSX-origin trades with the non-Massey stipulation were reported at 55.40 dollars/ton for second-quarter delivery, and for May delivery at 55.50 dollars/ton. And on April 6 and 7, two more May CSX-origin deals were reported at 55.60 dollars/ton each. At least one coal trader confirmed that certain OTC counterparties were willing to pay a roughly 50 cents premium for non-Massey coal. "We're definitely seeing more aggressive bids for non-Massey mines for prompt-month, second-quarter and even third-quarter coal. People are willing to pay 25 cents-50 cents more for that.