October 24, 2024 - The volume of thermal coal derivatives traded and cleared by brokers affiliated to the London Energy Brokers Association reached this year's highest level in September as prices remained volatile in the Atlantic region, according to LEBA data Oct. 22.

The total derivatives volume traded and cleared in September was 35.6 million metric tons, up 11% on the month and 19% on the year, according to the data. LEBA represents FCA-regulated wholesale market brokers in the over-the-counter and exchange-traded European energy markets. The previous record high was at 35.05 MMt in March.

The volume of European CIF ARA derivatives traded and cleared in September was up 4% on the month to 26.2 MMt and increased 7% on the year, the data showed. It made up nearly 74% of the total derivatives volume traded and cleared in September.

Platts, part of S&P Global Commodity Insights, assessed CIF ARA 6,000 kcal/kg NAR coal prices at an average of $113.45/t in September, compared with August's average of $120.55/t. The prices moved in a range of $110.80-$117.75/t during the month.

According to analysts with Commodity Insights: "Geopolitical concerns in the Middle East continue to roil global commodity markets, and the resulting volatility of natural gas markets and onset of winter demand has filtered through to delivered European thermal coal markets."

The analysts also said that "delivered European coal prices rose $3.70/t in the final week of September, closing Oct. 1 at $116.75/t after briefly touching $117.75/t on Sept. 30. There is continued risk to the upside to our forecast for delivered European thermal coal prices through Winter-24."

FOB Newcastle derivatives volume edged higher in September compared with the previous month due to increased demand from Asia-Pacific buyers. The FOB Newcastle derivatives volume was up 37% on the month to 8.5 MMt, a 78% increase compared with the year-ago month, according to LEBA.

South African FOB Richards Bay derivatives volume rose 27% to 849,000 t in September, and increased 78% the year-ago month, the data showed.