* Mar DES ARA trades at $104.50
* Feb ARA bid at $100.00
LONDON Jan 13 (Reuters) – Prompt physical coal prices
dropped by around $2.00 a tonne on Friday after reports that
credit rating agency Standard Poors is set to downgrade
several euro zone countries.
A March delivery DES ARA cargo traded between two utilities
at $104.50 a tonne early on Friday, down $2.00 from the previous
day’s last traded level.
Prices for FOB Richards Bay and ARA cargoes have slipped to
just above the $100 mark, a key level of psychological support
for these markets, one which many analysts do not expect to be
broken.
Australian prices FOB Newcastle have been slightly more
robust but a drop to $103 would leave smaller producers
struggling to make a profit, traders said.
The warm European winter has left utilities with more coal
on stockpiles and more due to be delivered than they need
The euro fell to and remained in sight of Wednesday’s
16-month low following the report on the possible SP downgrade,
which quoted a senior euro zone government source.
“The entire coal market’s coming off, API2 swaps were
smashed today after the (reports of a possible) SP downgrade
came out,” one European trader said.
Continued…
