November 26, 2024 - The volume of thermal coal derivatives traded and cleared by brokers affiliated to the London Energy Brokers Association reached this year's lowest level in October as prices remained volatile in the Atlantic region, according to LEBA data published Nov. 23.

The total derivatives volume traded and cleared in October was 26.05 million metric tons, down 27% on the month and 24% 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 of 25.80 MMt was reached in February.

The volume of European CIF ARA derivatives traded and cleared in October was down 25% on the month to 19.6 MMt, this year's lowest volume, and 26% on the year, the data showed.

Platts, part of S&P Global Commodity Insights, assessed CIF ARA 6,000 kcal/kg NAR coal prices at an average of $118.40/t in October, compared with September's average of $113.45/t.

According to market participants: "Volatility of natural gas markets and comparatively warmer temperatures in Europe has filtered through to delivered European thermal coal markets."

FOB Newcastle derivatives volume dropped in October compared with the previous month due to fall in demand from Asia-Pacific buyers. The FOB Newcastle derivatives volume was down 32% on the month to 5.8 MMt, a 16% fall compared with the year-ago month, according to LEBA.

South African FOB Richards Bay derivatives volume fell 32% to 574,000 t in October, and dropped 15% from the year-ago month, the data showed.