* Jan S.African cargo trades at $81.25/T
* Hurricane Sandy seen causing temporary price rise at most
* U.S. coal exports start to slow
LONDON, Oct 30 (Reuters) – Prompt European coal prices rose
by $1-$1.50 a tonne on Tuesday in line with coal swaps and
higher gas but few trades were reported.
South African cargo prices rose by $1.00 but remain below
$80 a tonne, a level at which many of the smaller producers will
be making losses.
December loading South African cargoes were bid at $77.65 a
tonne on Tuesday but key Indian buyers were holding out for
still lower prices or for cheaper, sub-standard specification
material.
“The market must be at the bottom now, at these prices too
many producers are feeling pain,” one European trader said.
The flow of U.S. coal exports into Europe has slowed
significantly during the past month as spot coal sales dried up
– at prices of around $85 a tonne delivered into Europe, U.S
coal sellers cannot compete with suppliers of other coal origins
such as Colombian or Russian.
This slowing in U.S. exports should start to have a positive
impact on European prices within weeks, traders and utilities
said.
Continued…
