spot price up $ 4 overnight now trading at $92

Tue Aug 7, 2012 12:43pm EDT

* S.African prices rise by $4/T to $92

* Colombia force majeures bolster prices -utilities

* Polish, Venezuelan, Indonesian coal offered into Europe

By Jacqueline Cowhig

LONDON, Aug 7 (Reuters) - Physical European prompt coal prices rallied by $1.00 a tonne on Tuesday to $95, the highest level since April 19, boosted by Colombian force majeures, utilities and traders said.

South African FOB prices rose more steeply by $4 to around $92, the highest since late June, but no fresh trades were reported.

Calendar 2013 swaps prices reached $100-$102 a tonne, a level that is likely to draw out fresh offers from sellers who could not make a profit at $82-$88 a tonne, the price range seen for most of the past two months.

There is a growing consensus that the market has seen the lowest prices it is likely to this year and that they will recover gradually in the next several months.

"The Colombia force majeures are giving a bit of life to the market, that's the main reason prices have risen quite strongly so when it's over, we could see a weaker market in late August," one end-user said.

Other players felt the market's rise was overdone, particularly if it was based upon current strikes in Colombia, which may end within days.

"They'll be back at work within days and there is far too much coal around, everywhere," one European trader said.

The strike by workers on Colombia's Fenoco railway, which moves coal for Drummond, Prodeco and Goldman Sachs has lasted for nearly two weeks and resulted in cargo force majeures which have removed 1.5 million tonnes from the country's exports this year.

Prodeco's mineworkers have also taken strike action for improved pay and benefits but even if they returned to work, so long as the railway is not operating, coal cannot flow to the ports from these producers' mines.

Colombia's ports, in common with most coal exporting countries, tend to run at maximum capacity and throughput so it will be impossible to catch up later this year with any prompt shipments that have been missed, industry sources said.