* All coal origins offered into ARA
* Weaker power, gas also drag coal lower
LONDON Feb 13 (Reuters) – A surge of offers of almost
every variety of coal in every cargo size for delivery into
Europe pushed physical prices down by around $1.00 on Monday to
$97.00.
Prices are set to remain below $100 with further falls
possible until China resumes buying and a new global price floor
is set by whatever price the Chinese are willing to pay, traders
and utilities said.
Falls in European power and gas prices also dragged coal
lower, as temperatures rose by 15 degrees from last week’s
freezing conditions.
Coal last week bucked the trend of spikes in European energy
markets due to a Siberian weather spell, by falling steadily for
several days, largely due to the growing oversupply of physical
cargoes and limited space to stockpile.
Pressure on utilities to shift coal from stockpiles or shed
unwanted cargoes due to arrive in the next few months has
mounted during the past few weeks and now traders and banks with
cargoes soon to load are having to join the ranks of sellers.
“Whatever origin you want, multi, U.S., Colombian, Russian,
in 25,000 tonnes to capesize cargoes, it’s being offered,” one
trader said.
So far, South African prices FOB Richards Bay have been
steadier, falling on Monday by around 50 cents, helped by a few
spot purchases by Indian buyers.
Continued…
