* Aug S.African trades three times at $87/T
* Supply seen extremely tight for July, August S.African
LONDON, June 27 (Reuters) – Prompt South African FOB
physical coal prices rose by around $1.00 on Wednesday as
traders bought to cover short positions amid tight supply for
July and August cargoes.
Prices have risen by around $7.00 a tonne during the past
week, mostly on trader buying.
There has been underlying Indian end-user interest from
cement and sponge iron makers and more enquiries from Indian
traders supplying them but not enough to be the sole reason for
the price rebound.
“Supply is extremely tight for July, you can’t find anything
from South Africa, nobody is willing to sell and August is
looking like it’ll be just as tight,” one European trader said.
DES ARA European prices also moved higher by around $1.00
after bids from utility/traders and traders but no fresh deals
were reported.
Continued…
