* April S.African cargo trades at $104/T
* Prices seen drifting lower in near-term
LONDON Jan 25 (Reuters) – Fresh bids were seen for
prompt South African cargoes, which helped steady prices despite
tepid demand in Asia and Europe.
FOB Richards Bay prices have hovered just above $100 a tonne
this month but unless China comes back from its New Year
holidays and swoops to buy large tonnages, there seem to be few
factors to prevent prices dipping apart from oil’s strength.
“Prompt Richards Bay and API4 swaps have been bid up
strongly while the market’s thin but it’s doubtful this can
last,” one European trader said.
Indian buyers are still largely sidelined and a few have
been selling cargoes back, traders said.
In Europe, utilities were more notable as sellers than
buyers because many have been left with more coal than they
expected as a result of the warm winter.
Oil’s strength is expected to limit coal’s potential to fall
due to weak fundamentals but with key buyers out of the market,
some further price falls were highly likely in the very
near-term, traders said.
TRADES
An April South African cargo traded at $104.00 a tonne.
PRICES
A February South African cargo was offered at $104.
A March South African cargo was bid at $104, as were an
April and May cargo.
A March DES ARA cargo was bid at $107.75.
(Reporting by Jacqueline Cowhig; editing by Keiron Henderson)
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