October 12, 2008

Europeans start buying coal from RBCT

Bloomberg reported that coal shipment from South Africa’s Richards Bay rose to a three year high as demand from European customers strengthened.

Mr John Howland an analyst at McCloskey Group “India was the biggest single customer in the first half. Europe didn’t want coal at the beginning of the year. Now European buying interest has come back in although it is small."

According to McCloskey Group Ltd coal from Richards Bay rose by 45 cents, or 0.7% to USD 61 per tonnes for the week ended September 14th 2007, that is the highest since the week ended August 20th 2004. The price of Richards Bay coal, which doesn’t include transport and insurance costs, has risen 19% this year.

Global demand for coal is being driven by Asia, which will take 31% of South African supplies by 2030, about five times more than in 2005, miner BHP Billiton Ltd forecast on September 4th 2007. That will squeeze supplies to European steelmakers and generators including Germany’s EON AG.