Reuters reported the price of physical prompt coal dropped sharply on news that Colombia will resume export of coal, causing the coal market to return back into surplus. South African coal prices also fell to $80 a tonne from a high of $90 a tonne earlier in August.
Barclays Capital said in a research note:
Fenoco (railway operator) is planning to ramp up railings to 165,000 tons/day. We expect Colombian exports to normalise over the coming two weeks, helping the seaborne-coal market in the Atlantic to move back into surplus by the end of the month.