* Fewer U.S. coal offers seen
* Norway oil strike boosts crude prices
LONDON, July 9 (Reuters) – Physical prompt coal prices fell
slightly on Monday despite a rise in oil prices.
Prices had rallied to around $90.00 a tonne early last week
before losing momentum due to weak economic data.
Although the threat of surplus cargoes, unwanted by China,
weighing on prices has receded, many market participants remain
uncertain about the market’s near-term direction.
Fewer offers of discounted U.S. coal have been seen, so that
the market seems more balanced than a couple of months ago and
demand from Asia outside of China, has been steady.
While few players expect to see fresh two-year lows, after
prices dropped close to $80 in May, few also expect to see
prices much above $100 this year.
“The traders who had been buying most of the DES and
Richards Bay cargoes haven’t been much in evidence today but it
is only Monday,” one European trader said.
When coal lacks clear direction, it often, but not always,
tracks oil but lags oil moves.
Continued…
