* Oct ARA trades at $89.75/T, up 25c
* Colombia strikes may support prices
LONDON, July 25 (Reuters) – Physical prompt coal prices
moved slightly higher on Wednesday but remained below $90.00 a
tonne.
An October delivery DES ARA cargo traded at $89.75 a tonne,
up 25 cents from Tuesday’s last trade.
Few bids or offers were seen for August cargoes as buyers in
both the Atlantic and Pacific markets waited for further price
drops and for any impact of continued Chinese price
re-negotiations.
“Everybody is being hurt by China, everybody – and anybody
who says they’re not is lying,” a Pacific-based producer said.
Indian traders struggling to get Chinese buyers to perform
contracts at prices higher than current levels have also been
hit by cancellations by Indian end-users.
This has left some of them with cargoes they are reluctant
to stockpile for months until demand picks up, which they will
have to sell, possibly at a loss.
Almost all the factors active in the coal market at present
are bearish but Colombia could prove to be a surprise
price-supporting element, traders and utilities said.
Continued…
