* Oct DES ARA trades $2/T lower at $89
* Aug S.African cargoes offered at $84-$84.50/T
* China Jun coal imports surge to record 22.53 mln T
LONDON, July 23 (Reuters) – Physical prompt coal prices
softened slightly on Monday on weaker oil and macro anxieties,
traders and utilities said.
“Coal is doing what it usually does when there are few,
clear signals, it looks at macro factors such as China, euro
zone crisis and oil,” one European trader said.
Oil prices dropped 3 percent on Monday on fears that Spain
is headed for a bailout and despite strong Chinese coal
imports in June, China remains largely out of the spot market
for thermal coal.
Stories of fresh Chinese forced price renegotiation are
circulating in the market, dissuading some suppliers from
chasing Chinese business at present because of what is perceived
as a high level of performance risk.
China’s coal imports surged by 65 percent in June, compared
with year-ago levels, to 22.53 million tonnes, according to
official customs data, but much of the surge was
coking coal rather than thermal.
A few players who had been active buyers for the Chinese
market are now selling prompt cargoes unwanted by China at a
large discount to current prices, traders said.
Continued…
