Wed Oct 19, 2011
* Economic weakness hampers physical demand
* Supply side looks healthy
LONDON Oct 19 (Reuters) - Prompt physical coal prices on Wednesday continued the week's downward trend on a day of minimal activity.
European demand continued to be low, and traders said that the outlook remained bearish.
"On the economic front, things aren't going to improve much even if we can avoid a double-dip recession, so that implies a sideways or downward movement as physical demand continues to drop or remains flat, while the supply side of coal looks good as a repeat of last year's floods in Australia is unlikely," one coal trader said.
In the paper market, API2 2012 coal swaps fell to $115.25 a tonne, their lowest level since February.
"Prices are going down, because the amount of shorts in the market is rising fast, and I don't see a big price recovery soon," another coal trader said.
TRADES
No trades were heard, but December South African coal deliveries had a bid-offer spread of $107-110.25 per tonne.
On Tuesday, a December South African cargoe traded at $111.25 a tonne.
No December DES ARA cargo was heard, but January deliveries saw a bid for $113.25 a tonne.
(sourced Reuters)
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment