* 2012 coal import/export surplus to be 6 mln tonnes
* Richards Bay Oct. cargo trades at $87.25/mt
LONDON Aug 30 (Reuters) – Physical coal prices in Europe
remained subdued on Thursday as the Atlantic basin returned to
surplus following the end of a strike in Colombia earlier in
August.
Coal prices have been declining for much of the first half
of the year as weak demand clashed with rising exports from the
United States, where coal-fired electricity generation has
become unprofitable as a result of the shale gas boom in North
America.
Colombian production dipped in late July and early August as
a rail strike prevented coal from inland mines from being
transported to export terminals along the coast.
As a result of the strike, the Atlantic basin saw a supply
squeeze but following the end of the dispute two weeks ago, the
Atlantic is expected to return into surplus by the end of this
week, analysts say.
For the remainder of the year and 2013, BarCap said that it
expected a slight surplus.
The bank said in a research note on Thursday that 2012’s
import demands of 837 million tonnes would be met by available
exports of 843 million tonnes, while 2013 would see import needs
of 849 million tonnes met by 850 million tonnes ready for
export.
“Coal pricing remains subdued, with weaker demand growth
from Chinese steel and power producers, coupled with healthy
supply increments from traditional exporters and the U.S.,
leaving the seaborne market well supplied.”
Continued…
