* April DES ARA trades at $95.00/T
* Richards Bay stocks dip to 2.8 million tonnes
LONDON, March 1 (Reuters) – Prompt physical coal
prices fell by $1.00 for the third consecutive day on oversupply
and a lack of buying interest in Europe.
European DES ARA prices have come under more pressure than
the FOB Richards Bay market because of flow of U.S. coal into
Europe, the impact of the warmest European winter for 30 years,
weak gas prices and key Asian buyers such as China largely
staying out of the spot market.
“DES is down by another dollar, there is some utility buying
because these prices are attractive but it’s fairly limited,”
one utility source said.
The South African market has been steadier with the front
month of the 90 day prompt window retaining a premium because
supply is fairly tight, suppliers said.
Stocks at Richards Bay Coal Terminal had dropped below 3
million tonnes on Wednesday and producers say they have little
unsold material for April.
There has been Indian buying, mostly bilaterally and all
spot, since the start of the year but this week there has been a
rise in the number of enquiries from Indian traders and
end-users, drawn by Richards Bay prices just above $100 a tonne.
Certain end-users in India, particularly in the cement
sector, still prefer South African coal and have been buying
although cement makers are also trying cargoes of cheaper U.S.
coal.
Continued…
