Asia Coal-Prices climb toward $91/T, Chinese coal extends fall

SHANGHAI, July 5 (Reuters) - Prompt Australian thermal coal
prices crept up to above $90 a tonne during the week boosted by
paper activities, but traders said signs of improving demand
from China and some spot buying from South Korea had helped to
stabilise prices.
Chinese buying had picked up slightly, but importers were
mostly interested in international supplies offered at
cut-throat prices and spurned recent higher offers.
Australia's Newcastle spot index for the week
closed at $90.60 per tonne on Thursday, up from $89.90 the
previous week, data provided by online trading platform
globalCOAL showed.
"There's been an uptick in trading activity but I'd say the
move towards $91 is largely driven by paper trades," said a
Singapore based trader.
A 25,000-tonne parcel of Newcastle coal for
September-loading traded onscreen on Wednesday at $90 per tonnes
on a free-on-board (FOB) basis, after a similar-sized
October-loading parcel traded at $90.50 on Tuesday.
Other traders said South Korean utilities had also bought
some spot cargoes from Australia, helping to buoy prices.
China's benchmark thermal coal prices extended its losing
streak and slid 3.7 percent to 676 yuan ($110) a tonne.
Chinese coal prices have dropped 111 yuan since the start of
May as the flood of cheaper overseas supplies has pressured the
domestic market.
"Stocks at ports and power plants have begun to fall
slightly, so some utilities are now ready to buy and that has
brought traders back into the market," said a Shanghai-based
source.
"But that doesn't mean things are looking all rosy.
Utilities still have fairly fat stocks so it's not like they'd
be eager to buy whatever comes along."
Chinese traders are willing to pay about $85 per tonne on a
landed basis for high-ash Australian coal with a heating value
of 5,500 kcal/kg (NAR) for delivery in August-September, however
offers have already crept higher around $89 a tonne over the
past week.
Coal stocks at Qinhuangdao Port slipped to 8.87 million
tonnes as of July 2, down slightly from 8.93 a week ago,
according to data from the port.
($1 = 6.3477 Chinese yuan)

(Reporting by Fayen Wong; editing by James Jukwey)