Coal

Manage risks when dealing with one of the most volatile commodities.

There are many factors that affect how volatile coal is. Direct factors that affect coal’s price volatility include the coal’s rank and grade, geographic region, and mining method. Indirect factors – such as the demand for electricity, global gas prices, and infrastructure woes – also affect coal’s volatility.

Aside from the above factors, the price of coal also depends on the type of transaction. A vast majority of the coal sold for electric power generation is sold via long-term contracts, while spot purchases of coal supplement the supply. And these spot purchase prices can change drastically depending on short-term market conditions.

Given all the factors that affect the price of coal, it’s understandable that coal prices change from year to year; however, it’s important to note that coal’s volatility is often more in flux than that of most other sectors. Prices can vary due to things that are wildly unpredictable, such as politics, international conflicts, and natural disasters.

When working with such a volatile sector, how can you put in place some semblance of stability and predictability in order to run your business better? A CTRM software solution custom-tailored for your business can help you.

Since 1997, ComFin has been widely regarded as an international leader in affordable, comprehensive, and flexible financial risk management software solutions or CTRM (Commodity Trading and Risk Management) solutions. Over the years, we’ve helped companies across the globe cut their exposure to volatile markets – such as the coal market – by equipping them with the resources, knowledge, and administrative processes they need to trade commodities efficiently and effectively.

Our CTRM software solution, Comcore, integrates and automates the full range of front office, middle office, back office, and top management functionalities.

Comcore allows you to:

  • Manage the entire lifecycle of a single or a continuous transaction
  • Use the latest market data to track, report, and manage your company’s risks in real-time
  • Automatically send confirmation notifications to other parties and to management in order to maintain clear communications and avoid duplicating efforts

Our team at ComFin is composed of international experts in risk management and commodity trading in the coal sector. We are fully prepared to help you come up with solutions to business challenges, streamline your processes, and improve upon your trading activities.