* March S.African trades at $104.75
* April DES Colombian bid at $90
LONDON Feb 14 (Reuters) – Heavy selling of prompt DES
ARA cargoes continued on Tuesday by utilities and traders but
there were more buyers in evidence than at the start of the week
and prices were barely changed.
A rise in temperatures after a spell of freezing weather has
trimmed gas and power demand and prices but had little effect on
coal, principally because coal prices showed a minimal reaction
to the freeze.
The current oversupply as cargoes bought previously or under
term contracts arrive in Europe will last only as long as China
remains out of the spot market, utilities, traders and producers
said. In the interim, prices will come under further pressure.
An April delivery Colombian DES ARA cargo was bid at $90.00,
$8.00 below the offer level, and while this seemed an
unrealistically low price to some players, others said they
expected to see $90 or lower before the market rebalances.
“This market is looking shaky, Europe especially,” one major
producer said.
“Europe is dead, the Baltic market is totally dead,” a
Russian exporter said.
Continued…
