* Oct S.African trades at $84.75/T
* Atlantic share of S.Africa Aug exports doubles
* China still seeking discounted, low-grade cargoes
LONDON, Sept 21 (Reuters) – Prompt coal prices eased by
around 50 cents a tonne on Friday in line with weaker European
power but remained in the range seen for the past few weeks of
$83-$89 a tonne.
Oil rose for the second day running to around $111 a barrel
on supply concerns and economic optimism but this has not yet
fed through into the coal market.
There were several trades on Friday for both FOB and DES ARA
cargoes, done between a variety of traders and utilities rather
than the usual two big players who have done much of the visibly
traded deals on screen and via brokers this year.
The market remains range-bound, with pressure on the prompt
months, but the flurry of trades seen on Friday did not indicate
a sudden increase in buying interest or demand, traders said.
“The trend is still for prices to keep drifting gently down
in the near-term because the buyers are wary and there’s still
too much coal around,” one European trader said.
Suppliers reported sporadic interest for spot cargoes of
various origins by Chinese buyers, particularly for low-grade or
high ash coal which tends to be offered at a steep discount to
standard material.
Continued…
