* Swaps fall $1 on bank selling
* No fixed price trades seen
LONDON Dec 14 (Reuters) – Physical prompt coal prices
slipped again by around 50-75 cents on Wednesday in line with
weaker oil, the euro and equities and in the absence of fresh
spot trade.
By early afternoon, no fixed price trades had taken place
and most bids and offers had been withdrawn, a sign that the
market has already largely wound down before the end of year
holidays.
Calendar year coal swaps fell over $1 on bank selling
although the volumes traded were thin.
“The euro’s down, oil and equities are down and there
doesn’t seem to be any real need to do business,” one European
trader said.
Utilities said despite a rise in German river water levels,
they did not expect to be buying more spot coal until Q1.
Activity in the coal market has been slow throughout Q4 with
key spot buyers China and India largely sidelined and minimal
demand from European utilities or traders.
The return of India and China to the spot market early next
year has already been factored into prices but the anticipated
buying may not materialise as quickly as expected.
Continued…
