European coal for next year fell to a record after unions and management at Colombia’s largest mine reached an agreement that may end a monthlong strike and increase exports from the South American country.
Thermal coal for delivery in 2014 to Amsterdam, Rotterdam or Antwerp dropped as much as 70 cents, or 0.7 percent, to $96.40 a metric ton, the lowest level since the contract began trading in January 2010, according to broker data compiled by Bloomberg. It traded at $96.55 a ton at 1:45 p.m. London time. Coal for delivery in April dropped 2.6 percent to $87 a ton, its lowest price since the start of trading in January.
The agreement may end a strike at the Cerrejon mine in about a week, Luz Maria Tobon, a spokeswoman for the Sintracarbon union, said in a phone interview today. Drummond Co., Colombia’s second-biggest producer, may resume exports of 80,000 of the fuel a day, after a local agency on March 1 lifted a coal-loading ban imposed after an incident in which the company dumped material to prevent a barge from sinking.
Supply disruptions in Colombia have affected 84 percent of the country’s thermal coal exports, according to Michael Hsueh, a London-based analyst at Deutsche Bank AG. The country exported 79.4 million tons of coal last year, of which 55 percent went to European Union countries, the analyst said in a report last month.
Bloomberg tracks broker data from ICAP Plc, GFI Group Inc., Marex Spectron Group Ltd., Credit Suisse Group AG, IHS McCloskey, Tradition Financial Services and Tullett Prebon Plc.
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