Euro Coal-Prices drop as Colombian exports resume
* Colombian exports expected to resume to 165,000 t/d
* Atlantic basin expected to return into surplus
LONDON Aug 20 (Reuters) - Physical prompt coal prices dropped sharply on Monday as resumed exports from Colombia were expected to return the Atlantic seaborne coal market back into surplus, analysts said.
September physical orders to Europe (DES ARA) weren't heard traded on Monday, but traders said that such an order would not be valued far above $90 a tonne.
The Atlantic basin saw supply squeezes early in August after Colombian railway workers held a weeks-long strike, but analysts said the seaborne Atlantic coal market will return to surplus by the end of August as Colombia ramps up its exports following the end the strike there.
"Fenoco (railway operator) is planning to ramp up railings to 165,000 tons/day. We expect Colombian exports to normalise over the coming two weeks, helping the seaborne-coal market in the Atlantic to move back into surplus by the end of the month," Barclays Capital said in a research note.
The resumption of Colombian exports also pulled down South African prices, which dropped from over $90 earlier in August to under $80 a tonne at the beginning of this week.
TRADES AND PRICES
No trades were heard, but a September Richards Bay cargo was offered at $87.95 a tonne, and November saw an offer of $89.95.
An October DES ARA cargo was offered at $93.25 a tonne, November saw a bid and offer at $93.25, but no trade was reported. (Reporting by Henning Gloystein; Editing by Alison Birrane)
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