* Nov DES ARA trades at $91, $91.50, $92.00
* BHP Billiton, Xstrata, cut Australia coal jobs
LONDON, Sept 10 (Reuters) – Physical coal prices fell by
$1.00-$1.50 a tonne on Tuesday in line with weaker UK gas,
despite a rise in oil on expectations that the U.S. Federal
Reserve will act to stimulate the economy.
Coal tends to lag moves in the oil market but the dearth of
spot buying interest in Asia and Europe has started to erode
confidence that prices had hit the bottom of the market.
Traders struggled to place spot cargoes and were even more
reluctant to buy in a market which could be vulnerable to
further falls.
“Prices dropped by $1.00 but there’s very little activity,”
one European trader said.
Three Q4 delivery DES ARA cargoes traded at $91.00, $91.50
and $92.00 on Tuesday, down $1.00-$1.50 from Monday’s levels.
Prices will come under renewed pressure unless some buying
picks up soon from India and China at the same time as the
latest production cuts start to be felt, suppliers said.
On Monday BHP Billiton and Xstrata announced
job cuts at mines in Australia, due to squeezed margins
from weak coal prices, high costs and the strong
Australian dollar.
Continued…
