Indonesian coal sold into Japan at about $150/T-sellersNUSA...

Indonesian coal sold into Japan at about $150/T-sellers
NUSA DUA, Indonesia, June 2 (Reuters) - Several high-quality Indonesian coal cargoes were sold into Japan last week at about $150 a tonne, coal producers and traders said on Monday. Some of the shipments were sold to Japan's Nippon Steel (5401.T: Quote, Profile, Research), one of the sources said, speaking on the sidelines of the Coaltrans Asia conference in Bali.
Industry sources said that Japanese utility Hokuriku Electric was also seeking an additional 500,000 tonnes of thermal coal for delivery in the balance of 2008 due to ongoing nuclear plant problems.

Australian thermal coal prices, a benchmark for Asia, have jumped nearly 65 percent since the start of the year, bolstered by strong global demand amid high oil prices as well as tight supplies.

Coal prices at the globalCOAL NEWC weekly index set a new record high of $150.78 in the week ended May 30, up $12.75 from the previous week, bolstered by several trades on the platform last week.

A 75,000-tonne parcel of Australian coal for August delivery was traded at $155 a tonne FOB Newcastle port, while two 30,000-tonne shipments for delivery in September and October were traded at $155 and $153 respectively.

Analysts have said that thermal coal prices were expected to face increased upward pressure as producers divert more supplies of high-grade thermal coal into the semi-soft coking coal market in a bid to seek higher prices.

South African coal prices are also expected to strengthen significantly in the coming weeks as Indian buyers start seeking fourth-quarter supplies, industry sources said.

Source Reuters