* China still buying, still re-negotiating
* Indian spot buying dries up
LONDON May 30 (Reuters) – European prompt physical coal
prices eased by up to $1.00 a tonne on Wednesday as the market,
disconcerted by an unexpectedly high trade the previous day,
seeks to gauge how bearish the new near-term outlook is.
China is still buying prompt coal cargoes at around $100 a
tonne delivered but re-negotiating more, while Indian spot
buying has almost dried up.
“Customers don’t want anything now so we have no need to
buy,” one of India’s biggest trader importers said.
The market is trying to work out whether Tuesday’s trade at
$90 for DES ARA – a leap of $5 from the most recent trade prior
to that – was anomalous or a sign of strengthening.
Players are looking for clear bullish or bearish signals and
finding few of either.
“There’s confusion at the front end, nobody seems very sure
if the market’s strengthening genuinely or is it just a move up
on paper,” a utility source said.
South African prompt prices dipped by around $1.00 a tonne
but remained close to $90.00 and were seen as fairly stable.
Continued…
