* South Africa supplies seen tight
* Coal market supported by oil prices
LONDON Jan 10 (Reuters) – Prompt European physical
coal prices inched lower by around 25 cents on Tuesday in light
trade as the market looked for firmer direction. A rise oil
prices helped cushion falls.
“Coal seemingly has gone for a bit of disconnect today. Oil
has provide a little bit of support, which has meant we are not
off as much as we could have been,” a European coal trader said.
Oil prices rose on Tuesday as optimism about U.S. economic
growth, anxiety about Iran’s nuclear dispute with the West and
unrest in Nigeria outweighed concerns about Europe’s economy.
India’s coal imports, key to global benchmark prices, are
likely to see slower growth in 2012 because of a record weak
rupee, which is squeezing users such as utilities and cement
makers, importers and suppliers said.
Last week the market appeared to have steadied, and tight
near-term supply of South African coal boosted prices.
TRADES
Continued…
