* Nov S.African trades at $84.75, $85/T up slightly
* S.African local govt unions mull strike action
LONDON Oct 8 (Reuters) – Prompt physical coal prices rose
slightly by 25-75 U.S. cents a tonne on Monday, in line with
stronger coal swaps values that were supported by concerns about
possible strike action in South Africa.
South African FOB prices showed surprising resilience,
traders said, given the tepid end-user spot buying in recent
weeks.
The risk of strikes in South Africa affecting the country’s
coal exports was cited as a reason for swaps’ strength late last
week and on Monday although physical players doubted there was
more than a slim chance of this happening.
But the swaps rally pulled physical prices up and drew out
buying interest from traders and end-users.
“The possibility of the strikes spreading has been mentioned
in some broker reports, it’s a factor in the swaps market rather
than physical,” one European trader said.
There have been several prompt South African cargo trades a
day for the past few days, although prices have hardly moved,
but these do not suggest an improvement in underlying demand,
which remains weak, suppliers and end-users said.
South Africa’s local government workers’ union said on
Monday that it would launch a strike over pay in the next few
days, a sign that labour unrest is spreading well beyond the
precious metals mines where it started.
Continued…
