Euro Coal-More bids seen for prompt S.African

* April S.African cargo trades at $104/T

* Prices seen drifting lower in near-term

LONDON Jan 25 (Reuters) - Fresh bids were seen for prompt South African cargoes, which helped steady prices despite tepid demand in Asia and Europe.

FOB Richards Bay prices have hovered just above $100 a tonne this month but unless China comes back from its New Year holidays and swoops to buy large tonnages, there seem to be few factors to prevent prices dipping apart from oil's strength.

"Prompt Richards Bay and API4 swaps have been bid up strongly while the market's thin but it's doubtful this can last," one European trader said.

Indian buyers are still largely sidelined and a few have been selling cargoes back, traders said.

In Europe, utilities were more notable as sellers than buyers because many have been left with more coal than they expected as a result of the warm winter.

Oil's strength is expected to limit coal's potential to fall due to weak fundamentals but with key buyers out of the market, some further price falls were highly likely in the very near-term, traders said.

TRADES An April South African cargo traded at $104.00 a tonne. PRICES A February South African cargo was offered at $104.

A March South African cargo was bid at $104, as were an April and May cargo.

A March DES ARA cargo was bid at $107.75. (Reporting by Jacqueline Cowhig; editing by Keiron Henderson)