* U.S. could ship 12 million T thermal coal to China in 2012
* Bearish Beijing conference mood despite strong imports
outlook
LONDON, April 19 (Reuters) – European physical coal prices
slipped by around 50 cents for the fifth day running on Thursday
while prompt South African FOB dropped by $1.00 due to
oversupply and tepid demand, despite strong coal consumption in
the UK, Germany and Spain.
Even if coal remains significantly cheaper than gas as a
fuel to generate power in Europe this year, it is unlikely that
enough of the current high inventories will be consumed to
trigger notable fresh buying, utilities said.
Utilities in the UK, Germany and Spain are burning a
seasonally high proportion of coal because it is more profitable
versus gas and because the UK and Germany are trying to destock,
they said.
During April-September, European coal consumption is usually
at its lowest because gas provides the most economic baseload
power but high gas prices and tight supply are spurring
utilities which can maximise their coal burn to do so.
“The UK is one of the few bright spots of demand, it’s weak
almost everywhere else,” one utility source said.
As fast as coal is moved from stockpiles to plants, more is
arriving, much of it Colombian and U.S. coal bought previously
by traders.
The slow return of China to the spot market has not helped
these trader longs – although China is set to import more this
year, the fresh buying expected from February has yet to
materialise in volume.
Continued…
