* Nov S.African trades at $87/T FOB
* Newcastle trades at $86.50-$92/T
LONDON, Sept 19 (Reuters) – Prompt coal prices slipped
around 25-50 U.S. cents a tonne lower on Wednesday in line with
weaker oil.
Prices for both delivered Europe and FOB Richards Bay
cargoes have been range-bound between $83-$89 a tonne for some
weeks with high inventories in Europe and minimal spot demand
globally weighing on prompt prices.
“The bid-offer spreads are narrower today (Wednesday) than
earlier in the week but very little has traded, people are too
uncertain,” one European trader said.
Oil fell to a six-week low on Wednesday as the market
digested comments from Saudi Arabia that it would take action to
keep prices in check, raising expectations of increased supply
.
Weekly data from the Energy Information Administration (EIA)
showed U.S. crude stocks rose far higher than expected by 8.5
million barrels, which triggered further selling.
Sentiment in the coal market is split between those players
who believe the market has hit the bottom of its slide since
June and those who believe fundamentals remain too weak in the
very short-term to prevent further price erosion.
This difference of opinion ought to translate into more
trades but this is not happening yet.
Continued…
