European thermal coal derivatives volume rise 11% MOM in Dec amid favorable market economics: LEBA

The volume of thermal coal derivatives traded and cleared by brokers affiliated with the London Energy Brokers Association rebounded in December from the year’s low recorded in the previous month, driven by favorable market economics in Europe and an uptick in demand from European buyers, seen according to LEBA data by S&P Global Commodity Insights Jan. 21.
The total derivatives volume traded and cleared in Dev was 31.9 million mt, up 11% on the month but 32% on the year, according to the Jan. 20 data from LEBA, which represents FCA-regulated wholesale market brokers in the over-the-counter and exchange-traded European energy markets.
Weakness in renewables and favorable weather conditions improved the feasibility of coal burning in Europe, leading to an uptick in demand from utilities to restock their inventories for the fourth quarter and Q1 2025, market participants said.
The volume of European CIF ARA derivatives traded and cleared in December was up 11% on the month and 31% on year to 25.9 million mt, making up over 80% of the total derivatives volume traded and cleared during the month, the LEBA data showed.
“Recent declines in solar, hydro and low wind generation across EU-10 has lifted thermal power demand and specifically coal generation,” according to a weekly thermal coal report published by analysts with Commodity Insights.
In December, Platts, part of Commodity Insights, assessed CIF ARA 6,000 kcal/kg NAR coal monthly average up $3/mt on the month to $111.24/mt, reflecting the improvement in coal feasibility for European utilities.
Also, the FOB Newcastle derivatives volume was up 19% on the month to 5.9 million mt and 45% on the year, according to LEBA.
While CIF ARA and FOB Newcastle derivatives rose sharply in December, FOB Richards Bay derivatives fell on the month, as activity in the Asian thermal coal market remained limited due to higher inventory with end-users, market participants said.
South African FOB Richards Bay derivatives volume fell 66% to 121,000 mt in November and 58% on the year, the data from LEBA showed.
Source: Platts