TELF AG Issues Sitrep on European Coal Market and Gas Prices
— TELF AG
LUGANO, TICINO, SWITZERLAND, July 31, 2023/EINPresswire.com/ — TELF AG, an international physical commodities trader, has released a sitrep exploring the recent developments in the European coal market. According to TELF AG, the European market saw a modest gain of $2.76 per ton for coal, with API2 reaching $101.86 and gCNew rising to $130.98 per ton.
As per TELF AG’s article, the stable spread between API2 and Newcastle at $26.36 per ton allowed flows from the Atlantic to the Pacific, creating valuable trade opportunities in the region. The increase in coal prices was influenced by higher-than-seasonal temperatures impacting the natural gas market. While gas prices recovered, coal prices experienced a more substantial rise, catching the attention of market participants.
TELF AG states that the European gas storage levels are high, which may lead to pressure on prices as flexibility diminishes when storage levels approach 100%. This scenario indirectly contributed to the upward movement of coal prices.
As per TELF AG’s analysis, soft South African coal prices in India resulted in limited market activity as buyers adopted a wait-and-see stance. Meanwhile, import thermal coal prices in China remained steady, but caution is growing among market participants. Indonesian and Australian thermal coal prices were relatively stable, with producers slowing down or halting production due to weak prices. Colombian exporters focused on Asia as European demand remained low.
TELF AG explores that the market is pricing in a risk premium despite fundamentals not entirely supporting the recent price increment. Any price correction might come from the gas side, especially if gas storage levels break over the critical threshold of 90%, potentially impacting the demand and pricing dynamics in the European coal market.
You can read the full article on TELF AG’s website at: https://telf.ch/telf-ag-sitrep-on-the-eu-coal-market-and-current-gas-prices-july-31-2023/
About TELF AG:
TELF AG is a full-service international physical commodities trader with 30 years of experience in the industry. Headquartered in Lugano, Switzerland, the company operates globally, serving customers and providing solutions for commodities producers worldwide. TELF AG works in close partnership with producers to provide effective marketing, as well as financing and logistics solutions, which enable suppliers to focus on their core activities and to access far-reaching markets wherever they may be.
Its flexible, customer-focused approach allows TELF AG to create tailor-made solutions for each producer, thereby facilitating long-term partnerships. Additionally, consumers widely recognize them for their operational excellence and reliability.
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Article originally published on www.einpresswire.com as European Coal Market Sees Modest Gain and Gas Price Recovery, TELF AG Reports