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* Weak rupee, credit woes squeeze Indian trade
* Chinese defaulted cargoes offered at discount
* India port stockpiles seen at 6-7 million tonnes
By Jacqueline Cowhig and Malini Menon
LONDON/NEW DELHI, July 27 (Reuters) – Indian coal markets
are seeing scattered defaults among end-user and trade buyers in
part because of a 20 percent slide in prices this year, although
the vast majority are honouring their contracts, Indian trader
said.
International coal prices have slumped to about $85 a tonne
for South African cargoes from comfortably over $100 in December
because of oversupply and tepid Asian demand.
The weakness of the rupee against the U.S. dollar, along
with ever-tightening credit availability, is squeezing the trade
middlemen who are holding high-priced imported coal inventories,
traders have said.
“There are some defaults by smaller traders and also two
cement makers,” said a source at one of India’s biggest coal
importers, who declined to be identified.
Continued…
