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Friday, January 13, 2012

Euro coal prices fall USD 1 per tonne with oil and low coal burn

Friday, 13 Jan 2012

Reuters reported that prompt European physical coal prices slipped by around USD 1.00 a tonne recently as utilities sold coal swaps in the face of weak coal burn across most of northern Europe after the warmest winter for 30 years.

Traders and utilities said a USD 1.00 fall in oil prices as risk aversion returned to the market and a rise in oil stockpiles in the US also helped pull coal lower.

One European utility source said "There was a lot of utility selling earlier today, everybody's got too much coal and the burn outside of southern Europe has been poor."

A European trader said "Oil fell, swaps fell and a lot of people backed off as a result."

No fixed price trades were reported.

(Sourced from Reuters)

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