australian coal price , page-2

Coal prices plunge as traders take profits
By Ambrose Evans-Pritchard
Last Updated: 1:09am BST 03/07/2008



Coal prices have tumbled from record highs earlier this week as buyers sit on their hands, setting off a scramble by hedge funds to liquidate speculative positions.

Newcastle and South African cargoes have plunged by over $20 a tonne in the last day, apparently triggered by fears of a European economic slowdown and concerns that the coal shortage in China might not be quite as extreme as supposed.

The sudden change in market psychology could be a warning sign for the oil and gas markets, where frenzied buying has pushed prices to levels once unthinkable.

While coal moves to its own distinctive rhythm, it tends to chime with the rest of the energy market.