Euro Coal-Prices dip, trade remains thin

Wed Oct 12, 2011

* Nov S.African trades at $112.50/T
* Oil rises but coal fails to follow

LONDON Oct 12 (Reuters) - Prompt physical coal prices fell slightly by around 25 U.S. cents a tonne on Wednesday after a day of quiet trade.

Few bids, offers or trades were reported in Europe, although South Korea and China have continued to quietly buy prompt cargoes, traders said.

"It's hard to see the market's direction clearly," said Emmanuel Fages, analyst with Societe Generale in Paris.

Coal has largely been immune to the sharp movements seen in other markets although prices have drifted lower by around $15 a tonne during the past two months.

Brent crude oil rose on Wednesday, lifted by news Slovakian lawmakers will approve a plan to expand powers in the euro zone rescue fund.

European demand has been minimal aside from the regular spot buying by one major utility which is always short physical coal but the pace of buying has picked up in Asia.

TRADES

A November loading South African cargo traded at $112.50 a tonne, up around 25 cents.

A December delivery DES ARA cargo traded at $119.50.

(sourced Reuters)