Europe Coal Prices on the Rise
European physical coal prices were slightly higher on Friday, on concerns about possible supply interruptions from Colombia and a further deterioration in Russia-Ukraine relations.
Cargoes for delivery in August to Amsterdam, Rotterdam and Antwerp (ARA) were trading at $74 a tonne on the globalCOAL platform, 35 cents higher than the previous settlement.
The September contract was 25 cents higher at $74.50 a tonne.
Traders said a decision to continue a strike by 3,500 mechanics at Colombia's largest coal mines into next week had left the market a little jumpy, though a union leader said on Thursday there had as yet been no notable impact on coal production.
Colombia's largest coal miner is joint venture Cerrejon, owned by Anglo American, BHP Billiton (BHPLF) and Glencore (GLCNF). The No. 2 miner is U.S.-based Drummond .
Another factor also helping underpin prices was the risk of a further deterioration in relations between major energy producer Russia and Ukraine, after a passenger jet crashed over eastern Ukraine on Thursday, traders added.
A Malaysian passenger jet went down in an area where separatists are fighting Ukrainian forces on Thursday, killing 298 people.
The Kremlin said on Friday leaders of Russia and Malaysia spoke by telephone stressing the need for an objective probe into the downing of the jet, saying a stop to military operations in eastern Ukraine would help achieve this.
Further along the curve, physical ARA prices for October delivery were down 40 cents at $74 a tonne.
(By Nina Chestney, Reporting by Nina Chestney; Editing by David Holmes)
