* May ARA bid at $87.25/T
* June ARA trades at $90.50, down over $2/T
LONDON, April 30 (Reuters) – European prompt physical coal
prices slid $2.50 a tonne to a new two-year low of $90.50 a
tonne on Monday, pushed down by weak fundamentals.
A June DES ARA cargo traded at $90.50 early on Monday, down
from the previous trade last week at $93.15.
An even more dramatic price fall was seen in prompt May ARA
cargoes, which were offered at prices below $90.00 on Monday.
A May ARA cargo was bid at $87.25 and offered at $89.75 on
trading platform globalCOAL.
A drop below $90.00 was seen as a strong bearish signal by
many market participants, some of whom predicted that support at
$85.00 would also soon be broken given the lack of spot demand
in Europe.
Prompt DES ARA coal prices have not been this low since the
autumn of 2010 and are poised to fall further, possibly to break
below $85.00, utilities and traders said.
At $85.00 a tonne or even lower prices, it will still be
possible for more coal to be shipped than can be consumed,
leaving the market with a surplus.
Continued…
