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LONDON: European physical coal prices were firm on Monday as a major Colombian miner said it might struggle to meet its export targets for 2013 following a strike and a rebel attack earlier this year.
Cerrejon, Colombia's top coal producer, said on Sunday that meeting its 2013 production target of 34 million tonnes would be difficult after a month-long strike earlier this year and guerrilla attacks on its railway.
A potential shortfall in Colombian exports during the peak demand winter season in Europe has sustained a premium for European import prices over South African and Australian coal contracts.
The bid-offer range for coal prices for delivery in December into Europe's main import terminals at Amsterdam, Rotterdam and Antwerp (ARA), which include cargoes from Colombia, was at $83-$85.50 a tonne on Monday, over $4 above the equivalent South African cargo range of $80-$81.75 a tonne.
"If the Colombians can't meet their export targets, then that affects Europe's coal markets more than Asian prices, where most demand is met by Australia, Indonesia and South Africa," one coal trader said.
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