Workers on strike are building a pressure on supply of Columbian coal, but if it resumes, the global coal prices will be pressurized owing to the low demand in the market.
The second largest Coal miner in South America, Drummond Coal's operations remains frozen because the workers on strike.However workers were voted last week to end the strike, but the country's largest labor union Sintramienergetica advised operations at two mines and Drummond terminal may resume by only after 60-day period and so it is expected that from mid-October only company will start shipping its entire volumes.
Also the Colombian large railway line operator (handling 22 MnT/annum), Fenoco's workers are also negotiating with company from 29th August'13 for wages.
Over all the Colombian coal market is going through the uncertain phase and as per the present scenario it may start around end of October'13.
As per the market participant on resume of Colombian coal supply, Atlantic coal prices may come under pressure because of the slow demand from market and expecting it will majorly put pressure on South African and US coal prices which will have a consequential effect around global coal market, which yet to see.
Also Colombian-origin 6,000 kcal/kg steam coal quotation has slipped to USD 69-74/MT FOB on the current uncertain market.
However European consumers, who are holding long term agreement for Colombian coal are facing difficulties, as their shipment are getting postponed by the suppliers because of strike.
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