* Nov S.African cargo bid at $79.25, offered at $81/T
* Indian buyers focus again on low-grade cargoes
LONDON Oct 17 (Reuters) – Prompt physical coal prices were
little changed to slightly higher on Wednesday but few trades
were seen as many coal market players returned from the biggest
annual industry conference in Istanbul this week.
Spot prices fell on Monday to fresh lows of $80 a tonne FOB
for South African coal, the lowest level since end-December
2009, and have since regained 50c-$1.00, traders and utilities
said.
“November South African was bid again today at $79.25 a
tonne but $81.00 is where most people are pegging prices,” one
European trader said.
A December DES ARA cargo traded at $86.25, up $1.50 from the
previous day’s last trade, but buying interest remains thin.
Indian spot demand remains limited and buyers are focusing
on sourcing low-grade Australian and South African coal which is
trading at a steep discount to standard material and this is
likely to further weigh on prices, Indian traders said.
Reports of defaults by one Indian trading firm against a
producer of South African coal and a European trader, have
increased market edginess about non-performance by Indian
counterparties after widespread Chinese price renegotiations
earlier this year.
Sentiment at the Coaltrans conference in Istanbul was gloomy
on the whole, with little upside potential seen for prices
within the next few months, participants said.
Continued…
