* Colombia rail strike seen having impact in another week
* More enquiries seen for DES ARA Q4 cargoes
* China slowdown already reflected in prices-trade
LONDON, July 30 (Reuters) – PLEASE CALL MOBILE 07961 931346
IF QUERIES
Physical prompt European coal prices firmed slightly on
Monday despite oil’s fall to $106 a barrel, more enquiries were
seen for Q4 cargoes delivered into Europe but few trades were
reported.
The general consensus is that the market has found a floor
at $85 a tonne for DES ARA European cargoes and is likely to
trade in a range between $85 and $95 for the balance of the
year, as players wait for production cuts and inventory
drawdowns to rebalance the market.
“Perhaps people are taking the possible impact of the
Colombia rail strike more seriously,” one European trader said.
Other market players said coal remains range-bound, hovering
at around $90 a tonne delivered into ARA and at roughly $88 a
tonne FOB Richards Bay for South African coal.
Colombia’s Drummond Coal, one of the country’s two biggest
thermal coal exporters, has been unable to load fully three out
of five ships which berthed between Friday and Monday, logistics
sources said late on Friday.
Continued…
