* Newcastle price forecast cut to $95/T – BoAML
* Sept S.African trades at 65 cents below API4
LONDON, July 16 (Reuters) – Physical prompt coal prices were
little changed on Monday, but saw some support from firmer coal
swaps values.
Swaps were bid higher in the afternoon in line with steady
oil, which held above $102 on hopes that China would step up
efforts to boost its economy.
On Sunday, China’s official Xinhua news agency quoted
Premier Wen Jiabao as saying measures to stabilise the economy
were working and the government would step up efforts in the
second half of the year, sparking expectations of further
easing.
Few fresh trades were reported, at prices little changed
from Friday’s levels.
Fundamentally, coal remains oversupplied in both the
Atlantic and Pacific markets, despite a strong coal burn across
much of Europe and steady imports into India and China.
Prices are likely to remain stuck in a range for the next
6-9 months, Bank Of America Merrill Lynch said in a research
note on Monday.
“We believe prices will remain relatively range-bound in the
next 6-9 months and establish an average second half 2012 target
of $91/T for (FOB Newcastle) coal,” BoAML said.
Continued…
