Steam coal prices stable as Chinese cargoes absorbed 19 hours 45 minutes ago
Reuters reported that European prompt physical coal prices steadied on Friday after slipping for most of the week, while many players were sidelined ahead of a UK public holiday and after most cargoes re priced into China or re sold elsewhere were absorbed.
No fresh trades were reported and few bids or offers were seen.
An August DES ARA cargo was bid at USD 88.50 and offered at USD 89.50, unchanged.
A July South African cargo was bid at USD 90.10, also unchanged.
An official of a power utility said that “It looks as if prices have almost found a bottom. We don't think they'll fall much further from current levels. The ARA cargoes which traded at USD 3 below the index, were originally for China, and others have been absorbed elsewhere in Asia, in the Mediterranean, into Turkey.”
Fresh buying by Chinese utilities and trader importers has encouraged hope of continued strong imports by China, although traders said it is too early to tell whether this would be enough to absorb the global surplus, especially given the gloomy euro zone economic outlook.
Although Chinese re negotiation of spot contract prices is likely to continue for the next couple of months as the last high-priced cargoes become due for shipment, a market panic two weeks ago that a slowdown in Chinese growth spelled doom for coal prices seems to have eased.
Source – Reuters
CCC Price at posting:
14.5¢ Sentiment: Hold Disclosure: Held
