* June S.African bid at $100.00/T
* Carbopego seeks June, August cargoes
LONDON, April 20 (Reuters) – European physical coal prices
steadied on Friday after a day of quiet trading with no fresh
deals reported.
There are a few hot spots of European demand – Spain and
Portugal, the UK and Germany – but too many sellers.
Portugal’s Carbopego is expected to award a tender for June
and August cargoes next week and to buy Colombian coal.
Prompt South African prices were hovering around $100.00 a
tonne FOB Richards Bay, a level low enough to draw out some more
Indian enquiries.
DES ARA delivered Europe prices are expected to remain
range-bound and any potential price rises due to supply problems
or stronger demand will be capped by extra supply from the U.S.
and other exporters, utilities and traders said.
“Prices are still stuck in the range of $95-$105 a tonne in
ARA and unless there is some major shift change, some shock, I
can’t see them moving out of the range,” said a source at one of
Europe’s biggest utilities.
Even if coal remains significantly cheaper than gas as a
fuel to generate power in Europe this year, it is unlikely that
enough of the current high inventories will be consumed to
trigger notable fresh buying, utilities said.
Continued…
