* Nov and Dec S.African cargoes bid at $74/T FOB
* 1.2 million tonnes/year coal affected by S.African strikes
* Analysts neutral to negative on coal price direction
LONDON, Oct 26 (Reuters) – Prompt physical coal prices
slipped by 50-60 U.S. cents a tonne for the third day in a row
as weak demand from India and China outweighed anxieties about
South African strikes spreading to disrupt exports.
Although India’s monthly imports have been strong and steady
all year, spot buying for Q4 has been disappointing, suppliers
said.
“Having waited for prices to drop to $80 for South African
before buying and then seen the market fall below that level,
they’ve backed off now because it may not have hit the bottom
yet,” one European trader said.
November and December loading South African cargoes were bid
at $74.00 a tonne FOB Richards Bay on Friday – having fallen to
a nearly three-year low of $77 on Wednesday.
Bids of $74 which were dismissed as unrealistically low by
many players on Thursday seemed on Friday far more realistic a
reflection of the market’s weakness in the last two months of
the calendar year, traders and utilities said.
While prices appear vulnerable to further falls, Indian
buyers in particular will remain sidelined, they said.
Continued…
