GlobalCOAL makes changes to Richard’s Bay coal market after complaints
Coal trading platform globalCOAL has made changes to South Africa’s Richard’s Bay market after complaints about high bids for unusual tonnages.
Bids, offers and trades of physical coal at Richard’s Bay will be limited to multiples of 25,000 tonnes, the world’s top physical coal broker, globalCOAL, said in a statement late on Monday.
“The change addresses concerns voiced by globalCOAL market members about bidding activity in unusual clip sizes,” the trading platform said.
Since January there has been a jump in the number of buyers looking for non-standard tonnages for RB1 coal, globalCOAL said last week.
Traders said those bids are often above the market, which some think is skewing prices higher, with a knock-on effect on the API 4 index, the benchmark for pricing South African coal.
By entering bids on screen that no seller is in a position meet, a bidder could artificially push up prices, one coal trader told Reuters last week.