* Hurricane Sandy not seen affecting coal prices
* DES ARA prices fall by $1/T, S.African prices rise with
swaps
* TEPCO seeks diverse supply to control coal costs
LONDON, Oct 29 (Reuters) – Prompt European coal prices fell
fell by $1 a tonne despite an initial rise in oil prices as
Hurricane Sandy shut U.S. refineries.
Sandy, dubbed the Frankenstorm by U.S. media, boosted U.S.
oil and refined product prices.
U.S. coal exports from east coast ports could be disrupted
or at least see slight delays but this is unlikely to have any
impact on spot market prices because there is still more prompt
supply than demand to absorb it, traders and utilities said.
Bids for December delivery DES ARA cargoes dropped by $1 to
$82.50 a tonne from Friday but South African prices rose by up
to $2.00.
The fall in DES ARA prices and rise in FOB South African
prices did not indicate any fundamental shifts but was more of a
reflection of moves in the coal swaps market and fewer offers
for South African cargoes on Monday, they said.
Until demand revives for Q4 in Europe as well as key spot
markets India and China, the impact of production cuts made this
year in response to low prices will not be felt in prices, they
said.
Continued…
