Russian spot coal seen as limited

London (Platts)--16Mar2006

Availability of spot Russian coal for delivery into Europe is unlikely to improve until the second half of May say supplier sources, as sea ice continues to cause navigational difficulties to ships using Baltic ports.

St. Petersburg port has ice of around 45 cm thick in its inner harbor areas and other Baltic ports are also similarly affected, according to shipping reports, although the ice is expected to begin to break up during the spring thaw in coming weeks.

Prices for Baltic-origin Russian coal have increased several dollars in recent weeks, following a significant rise in delivered northwest Europe and South African prices to $67/mt CIF ARA and $57-58/mt FOB respectively.

One supplier quoted a spot price of $58-$59/mt FOB for panamax-sized cargoes of Russian coal and about $56-$57/mt for handysized vessels.

"The situation is as follows: no coal is available in the Baltic before May at all. Second half of May could be possible," the supplier source stated. A number of Russian coal suppliers have already sold forward significant amounts of coal in long term contracts.

A second supplier agreed that spot Russian coal appeared in short supply.

But a third coal market participant questioned the shortage claims and suggested some parties may be talking from their order books.

This story was originally published in Platts Coal Trader. Request a free trial at http://www.platts.com/Request%20More%20Information/

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