Coal turns a corner

Asian coal-trading is still proving a tough nut to crack. But the underlying market is developing, and a growing need for better risk management suggests it is only a matter of time before a paper market takes off

Coal trading in Asia has been notoriously difficult to get off the ground, so the latest foray into the market by electronic marketplace globalCoal is being watched carefully.

Interestingly, it is being driven by coal-mining companies looking for risk management rather than by consumers, as was the case in Europe and North America. In response to this, globalCoal launched physical contracts for Indonesian coal earlier this year. So far, Indonesian producers PT Kaltim Prima Coal and PT Arutmin