* Nov S.African cargoes trade at $83.75-$84/T
* Weak rupee limits Indian buying interest
LONDON Oct 3 (Reuters) – Prompt physical coal prices were
barely changed again as the market waited for a much-needed
seasonal rise in demand to absorb some of the persistent
oversupply.
An unusually large number of South African cargoes traded on
Wednesday but there seemed no common factor behind the buying.
Most of the five cargoes which traded were bought by traders
or utility/traders and were thought to be covering short
positions or to defend swaps positions.
“There were various types of buyers involved, I wouldn’t say
it’s driven by Indian buying,” one European trader said.
There have been more enquiries for prompt South African
tonnes by Indian trade importers but demand in the subcontinent
remains muted, Indian traders said.
Although South African prices have slipped close to the
$81.65/T two-year low seen in June and are substantially lower
than the $100 levels seen at the start of the year, the weakness
of the Indian rupee against the U.S. dollar has trimmed very
little from the real cost of imported coal, Indian traders said.
The rupee on Wednesday touched a five-month high driven by
foreign fund inflows into equities but was recovering from
hitting a two-year low in the summer and remains relatively weak
.
Continued…
