LONDON, March 30 (Reuters) – Prompt physical coal prices
rose by nearly $2 a tonne on Friday following Xstrata’s first
quarterly term settlement at $115 FOB Newcastle to Japanese
utilities and absorption of surplus coal by South Korea.
“The panic’s over for now. Nobody’s dumping coal like they
were recently,” one European utility said.
Xstrata’s settlement with Japan gave a boost to Newcastle
prices, which hauled the rest of the market up with them,
traders said.
Xstrata had sought $120-$125 a tonne FOB before spot prices
slipped earlier in March to just over $100, so $115 was seen as
moderately bullish for prices, utilities and traders said
.
South Korea, the most active spot buyer in Asia at present,
has meanwhile been taking in Colombian coal, which is not needed
in oversupplied Europe and has taken some pressure off DES ARA
prices, suppliers said.
Otherwise, both the Atlantic and Pacific markets were quiet.
TRADES
Two May-loading South African cargoes traded at $104.00 a
tonne, and a third traded at $104.25.
Continued…
