LONDON (Reuters) - European prompt physical coal prices rose slightly on Friday, shrugging off falls in oil and coal swaps.
Physical demand remained thin, because some players with long positions lack the capacity to burn coal and many utilities are burning down their stockpiles before ordering new deliveries.
A December FOB Richards Bay trade was heard at $110.25 a tonne, which was on the upper end of the previous day's bid/offer range of $105/$110.25 a tonne and 65 cents higher than the last heard deal.
Coal futures were also up, with the API2 2012 swaps contract rising to $120 a tonne for the first time since Oct. 13.
Because of the previous downtrend, the 50 exponential daily moving average (DMA) remained below its longer-term 100 and 200 DMAs.
Traders said that strong figures from China Shenhua Energy Co Ltd , the country's largest coal producer and the world's most valuable coal producer, had encouraged the coal market.
Despite its strong figures, Shenhua Energy warned of a slowdown in economic growth, which could drag on energy demand.
The strength came despite a fall in crude oil prices, as traders cashed in on strong rises the previous few sessions.
ICE Brent December crude fell $2.14 to $109.94 a barrel by 1310 GMT, having traded from $109.71 to $112.23.
A South African delivery for December was heard at $110.25 a tonne.
A South Africa November cargo had a bid at $106 and an offer of $107.50 a tonne.
A December DES ARA cargo was offered at $123.75 a tonne.