Increased activity in coking coal spot trade raises hopes of a swaps market

coal

The stalled coking coal swaps market could benefit from increasing spot coking coal trade and more players reportedly belatedly switching over to shorter-term pricing contracts.

Coking coal swaps trade is set to follow the pick-up in thermal coal swaps as China's spot trade influence grows and the coking coal market accelerates its shift into shorter-term pricing.

Thermal coal derivatives were boosted by the introduction of south China swap contracts which first traded in 2011, gaining momentum