* Dec DES ARA trades at $87.25/T
* Nov S.African offered at $84/T, down $2
LONDON Oct 11 (Reuters) – Prompt physical coal prices fell
by $1-2 a tonne on Thursday in line with coal swaps’ weakness in
early trading.
A November loading South African cargo was bid at $80.00 and
offered at $84.00 a tonne, down more than $2.00 on the offer.
Some South African producers have unsold cargoes for
November and December and this could weigh on prices, countering
remaining anxiety over wildcat strikes in the South African
mining industry spreading to the coal sector.
Oil’s rally to over $115 a barrel on escalating tension
between Syria and Turkey did litle to buoy coal prices but may
do so in the next few days because coal often lags moves in oil,
traders said.
Spot buying interest in Europe remains limited and fresh
buying from India and China has been slow to revive after the
Indian monsoon season and Chinese Golden Week holidays.
“Industrial growth (in India) is the problem, not the price
of coal,” one major Indian trade importer said.
“The cement sector is oversupplied, so is sponge iron and at
the same time their costs have been rising so they need less
coal,” he said.
Continued…
