Steam coal prices remain stable despite many cargo offers

Wednesday, 15 Feb 2012

Reuters reported that heavy selling of prompt DES ARA cargoes continued on Tuesday by utilities and traders but there were more buyers in evidence than at the start of the week and prices were barely changed.

TRADES

A February delivery DES ARA cargo traded at USD 96.00 a tonne, barely changed.

A March delivery DES ARA cargo traded at USD 97.00, little changed from Monday.

A March loading South African cargo traded at USD 104.75, down 25 cents.

An April loading South African cargo traded at USD 103.20, unchanged.

A rise in temperatures after a spell of freezing weather has trimmed gas and power demand and prices but had little effect on coal, principally because coal prices showed a minimal reaction to the freeze.

The current oversupply as cargoes bought previously or under term contracts arrive in Europe will last only as long as China remains out of the spot market, utilities, traders and producers said. In the interim, prices will come under further pressure.

(Sourced from Reuters)