http://uk.reuters.com/article/2013/08/13/coal-prices-south-africa-idUKL6N0GE22920130813
LONDON, Aug 13 (Reuters) - South African physical coal is trading higher than the equivalent European contract for the first time in six weeks, as unions in the world's fifth largest exporter declared a dispute over wages and buyers stocked up ahead of winter.
South Africa is a major supplier of coal to large developing economies China and India, and is expected to step up exports to Europe in the fourth quarter as part of a deal said to have been done by a trading house to ship 3.5 million tonnes to terminals in Amsterdam, Rotterdam and Antwerp (ARA).
South African coal for September delivery settled at $74.50 per tonne on Monday, compared with $74.10 for Colombian, U.S. and Russian origin coal, wiping out a $5 premium for the European physical coal benchmark seen just two weeks ago.
South Africa's Business Day newspaper reported on Tuesday that talks between coal producers and unions had reached a stalemate, meaning the government was likely to mediate in the dispute over wages in an attempt to avoid costly strikes.
The country's Richard's Bay terminal handled 68.5 million tonnes of exports last year, mostly thermal coal, and a strike at its coal mines later this year could have a major impact on shipments, traders said.
Most of South Africa's export grade coal is produced by Anglo American, BHP Billiton and Glencore Xstrata.
"India in particular stepped up buying in recent months of South African coal as power stations needed more imports and took advantage of weaker prices," said one trader.
- Forums
- ASX - By Stock
- Ann: Quarterly Activities Report
http://uk.reuters.com/article/2013/08/13/coal-prices-south-africa...
-
- There are more pages in this discussion • 15 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add IKW (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
LPM
LITHIUM PLUS MINERALS LTD.
Simon Kidston, Non--Executive Director
Simon Kidston
Non--Executive Director
SPONSORED BY The Market Online