Coal As A Traded Commodity
In North America, Central Appalachian coal futures contracts are currently traded on the New York Mercantile Exchange (trading symbol QL). The trading unit is 1,550 short tons (1,410 t) per contract, and is quoted in U.S. dollars and cents per ton. Since coal is the principal fuel for generating electricity in the United States, coal futures contracts provide coal producers and the electric power industry an important tool for hedging and risk management.
In addition to the NYMEX contract, the IntercontinentalExchange (ICE) has European (Rotterdam) and South African (Richards Bay) coal futures available for trading. The trading unit for these contracts is 5,000 tonnes (5,500 short tons), and are also quoted in U.S. dollars and cents per ton.
The price of coal increased from around $30.00 per short ton in 2000 to around $150.00 per short ton as of September 2008. As of October 2008, the price per short ton had declined to $111.50. Prices further declined to $71.25 as of October 2010.
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Famous quotes containing the words coal, traded and/or commodity:
“Coal is a portable climate. It carries the heat of the tropics to Labrador and the polar circle; and it is the means of transporting itself whithersoever it is wanted. Watt and Stephenson whispered in the ear of mankind their secret, that a half-ounce of coal will draw two tons a mile, and coal carries coal, by rail and by boat, to make Canada as warm as Calcutta, and with its comfort brings its industrial power.”
—Ralph Waldo Emerson (1803–1882)
“When we traded the buffalo for a mare,
we had no milk to drink,
and we still had droppings to clean up.”
—Punjabi proverb, trans. by Gurinder Singh Mann.
“If mass communications blend together harmoniously, and often unnoticeably, art, politics, religion, and philosophy with commercials, they bring these realms of culture to their common denominator—the commodity form. The music of the soul is also the music of salesmanship. Exchange value, not truth value, counts.”
—Herbert Marcuse (1898–1979)