* Demand softens at end of winter heating season
* Rising U.S. exports add to ample European stocks
By Henning Gloystein
LONDON, March 27 (Reuters) – Prices for prompt physical coal
deliveries rose on Tuesday as strengthening power and gas prices
lifted coal contracts, but analysts said the coal market
remained under downward pressure from ample supply and lower
demand at the end of winter.
A May cargo for delivery to Europe (DES ARA) was heard at
$98.25 a tonne, according to GLOBALcoal, up $1.5 on the previous
day.
Traders said that the market had been lifted by
strengthening power and gas prices in Europe.
German power prices for baseload (24 hours) delivery in 2013
rose by around 20 euro cents to 51.55 euros per megawatt-hour,
supported by healthy industrial demand.
Gas prices rose on the back of production outages following
a North Sea gas leak at Total’s Elgin.
Benchmark UK gas prices for delivery in summer were trading
around 60 pence per therm in the afternoon, up from around 59
pence the previous day.
Continued…
