* Oct DES ARA trades at $91.00, up 85 cents.
* U.S. domestic coal sales fall 20 pct-BarCap
* Prices remain in range, find floor at $85/T
LONDON, July 20 (Reuters) – Physical prompt coal prices rose
slightly on Friday in thin trade on steady demand from Asia and
China’s return to the spot market.
“Prices are still in a range, tracking oil to a degree but
overall it’s typically-slow summer trading,” one European trader
said.
End-user demand in Asia is steady although still limited in
Europe and China’s return to the spot market has helped bolster
coal prices internationally, Deutsche Bank said in a research
note on Friday.
“Spot prices have rebounded as China returned to the market
– traders have been buying coal on the seaborne market as it
started trading at a significant discount to the China domestic
coal price,” Deutsche Bank said.
Oil gave little direction to coal prices on Friday but the
dollar’s rally, which spurred a dip in oil towards $106 a barrel
on Friday, will have an impact on coal but likely after a delay,
traders said..
Coal prices have found a floor at $85 a tonne and are
gradually creeping higher, as the impact of production cuts
starts to be felt – end-user demand has remained steady in Asia
but minimal in Europe.
Continued…
