Reuters reported that European thermal coal futures prices dropped to their lowest since the start of the 2008 financial crisis as supply from major exporter Colombia looked likely to return to normal following the expected end of a month long strike by next week.
API2 2014 coal futures contracts were trading around USD 96.60 a tonne at 1445 GMT on Monday, over 30% below their most recent peak around USD 138 a tonne reached in spring 2011, when the Arab spring, Australian floods, and the nuclear disaster at Japan's Fukushima reactors caused a spike in energy prices. It is also the lowest level in the contract since the peak of the financial crisis in 2009 and prices, are down 1 percent on Friday's close.
Traders said that the price drops were mainly in reaction to an expected improvement in supply from Colombia as a strike at the country's largest producer Cerrejon could end within a week after the company reported progress in talks with union officials.
Another major disruption to Colombia's coal sector is already coming to an end after a regulator lifted suspensions on the country's No. 2 exporter, Drummond Ltd, and on the main railway.
Source – Reuters