* Market seeks stronger China buying push
* Physical market support seen for now
LONDON Jan 18 (Reuters) – Prompt physical coal prices
rose by up to 75 cents a tonne on Wednesday, helped by light
buying interest, with South African cargoes seen supported for
now.
Chinese importers have been out of the market for the past
few weeks and are not expected to return until after the New
Year holidays, but a few have been quietly re-selling cargoes
since last week.
“We’ve seen some interest on both the physical and paper
side, which has kept things firm and it’s up between 50 and 75
cents today,” one trader said, referring to swaps trading.
Coal prices have been supported to a large degree by firmer
oil prices, which have prevented what could have been a much
steeper slide in coal values since December.
Oil’s resilience, mostly due to supply concerns, has masked
the effect of poor coal fundamentals. Oil retreated on Wednesday
as optimism, spurred by talk the IMF may do more to help resolve
the European debt crisis, proved shortlived, with a gloomy
demand outlook pressuring prices.
TRADES
A March DES ARA cargo traded at $103.85 and was quoted on
Tuesday at $102.50.
Continued…
