Euro Coal-Prices tick higher with oil, power

Related Topics

Fri Jan 27, 2012 1:04pm EST

* April DES ARA trades at $1.50 below swaps

* S.African supply for Feb/Mar tightening

LONDON Jan 27 (Reuters) - A rise in oil, European power values and tight prompt supply of South African coal pushed coal swaps and physical prices higher by around 50 cents to $1.00 U.S. a tonne on Friday.

But prices could start to sag again and dip towards $100 if China stays out of the spot market for another few weeks after the end of the Lunar New Year holidays, traders and utilities said.

Brent crude held above $111 as a move from Iran to stop exports to the European Union intensified worries about security of supply while European spot power prices were lifted by forecasts of a cold weather snap and lower wind power supply .

"Europe is extremely quiet but we're sold out for February and March and still getting calls from buyers outside Europe who are nothing to do with China," one European trader said.

March loading South African cargoes were bid and offered at around $109.00 a tonne FOB Richards Bay on Friday, up 50 cents from the previous day.

A February South African cargo was offered at $107.00 - $1.00 below API4 coal swaps - by an Asia-based trader which does cannot deal with a wide range of counterparties.

TRADES An April delivery DES ARA cargo traded at $1.50 a tonne below the API2 index.

PRICES

A February South African cargo was offered at $107.00 for 50,000 tonnes, unchanged.

A March South African cargo was bid at $108.25 and offered at $109.50, up $1.00 on the offer.

A February DES ARA cargo was offered at $104.50 while a March cargo was offered at $105.75.

An April DES cargo was bid at $104.50 and offered at $106.25. (Reporting by Jacqueline Cowhig; editing by Keiron Henderson)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.