* Gas hits 6-year high on tight supply, cold
* Indonesia rains cause shipment delays
LONDON Feb 6 (Reuters) – Coal prices made modest
gains of around 75 cents per tonne on Monday as the arrival of
more cargoes balanced against a freeze across much of Europe,
which drove up gas and oil prices.
“Gas, power, oil, everything was up. Coal’s followed, but the
short-term physical outlook still looks weak,” one major
European trader said.
Several European utilities and utility/traders signed term
contracts two years ago to import American coal, which have kept
stockpiles swollen through a winter that has been unusually mild
until the latest cold snap.
As more U.S. and Colombian cargoes arrive in Europe while
spot buying remains weak, some downward pressure is expected on
prices.
How far this will be offset by a resumption of large-scale
Chinese imports, remains to be seen, suppliers said.
Chinese spot buying has yet to take off now that the Lunar
New Year holidays are over, but demand elsewhere in Asia has
been reasonably strong, traders and producers said.
Floods in Australia and heavy rains during the past month in
Indonesia are already delaying shipments, but so far end-users
have not been compelled to seek replacement tonnes.
Continued…
