coal price fall - india's renewed interest

Many this week have been bewildered yet again by CCC's SP drop. Charts are a record of the market pattern in the past an indicator of sentiment and a guideline for the future, nothing in the future is concrete or guaranteed though in the share market.

We have had talk of coal prices being up to $130/140 per tonne FOB.

Facts.....Coal prices over the past week have fallen substantially. Thermal coal prices now back to $113/$114 per tonne FOB.

Source: reuters/coal today
http://coaltoday.wordpress.com/2011/02/10/s-africa-coal-price-fall-draws-out-indian-buying/

"S.Africa coal price fall draws out Indian buyingPosted: February 10, 2011 by Coal Reporter in Prices
Tags: coal, coal prices, south africa, richards bay, thermal coal 0A fall in South African thermal coal prices to $113 a tonne this week has started to draw out Indian buyers who have been sidelined since November, Indian traders said on Thursday.

Spot coal prices topped $120 a tonne in December from $90 in October on strong Chinese spot imports and spiked again in January after disastrous Australian floods.

During this period, Indian end-users stayed firmly out of the market and relied on stockpiles, deliveries of term contract coal and cheaper coal from Indonesia instead.

India?s share of South Africa?s coal exports has risen from almost nothing five years ago to an average of 30 percent a month.

The participation of these buyers and the Indian traders who supply them is also a crucial element of the global spot market ? their withdrawal usually triggers a fall in prices but panic-buying and bullish sentiment was overwhelming last month.

?At these prices of around $113, $114 a tonne FOB Richards Bay some more people are looking to buy South African coal now, it?s not a bad price,? one of India?s biggest trader importers said.

?Between December and February there were no physical demand reasons for prices to up $24 and then down $20, it was all artificial,? he said.

India?s Binani Cement Ltd this week bought a March loading South African cargo at $114 a tonne FOB, traders said.

A few of the smaller to medium-sized cement makers are likely to issue tenders now to take advantage of falling coal prices and extremely weak freight, traders said."

Source: Reuters


OZ and Linq were mentioned over the past two weeks. With price drops of course they will sell up and invest on what is moving upwards. They are professionals and will play our stock at anytime they wish. Our posts over the past nine months have proven how emotional myself, Champ, GS, Brenden, ESP, Muppet, Gustie(Long live Gustie),even Mihal, Mikayla and so many other brilliant posters can become....Sorry FM you are not excluded here.

We all have seen the same pattern on CCC and on close on Friday they dictated the sentiment yet once again.

But there was a very basic reason.....Money and profit.

We don't need to panic on CCC because we all know it has brilliant possibilities or we would never have believed that it was "going to be massive" or a "monster". We do know that it has certainly been a "roller coaster" and will continue to be such until the companies production and continual orders along with nice profitable figures are firmly implanted in the record books.

Richards Bay freight and shipping have and are still improving dramatically and with the AIM listing, Botswana, Kenya and even Tanzania on the horizon along with two mines actively producing and fulfilling orders the future is great for CCC long term.