* July S.African cargo bid at $79.00
* July ARA cargo bid at $77.00
LONDON, June 12 (Reuters) – European delivered coal prices
slid sharply on Tuesday as oversupply and a halt to spot buying
weighed on the market, pushing bid/offer levels to fresh lows
although no trades were reported.
South African prompt prices have tumbled during the past
week from nearly $90 a tonne FOB to below $80 – a July cargo was
bid at $79.00 early on Tuesday – as spot buyers remained on the
sidelines.
Asian spot demand has shrivelled because South Korea, Japan
and Taiwan are not buying enough to compensate for the hiatus in
China’s purchases, traders and suppliers said.
Inventories in China are high at northern and southern ports
and at power plants, Chinese shipping sources said.
Until these inventories are reduced, importers will not buy,
they said.
South African coal, which is mostly shipped to Asia now, is
almost low enough in price to be sold into the European market,
traders said.
“Richards Bay coal only needs to fall another $2 and it will
price into Europe, although not for very long,” one trader said.
Continued…
