Reuters reported that European prompt physical coal prices weakened slightly on Monday with the greatest downward pressure felt by South African cargoes for immediate loading in September.

Utilities and traders said traders with Richards Bay cargoes about to load have found few buyers in Europe or Asia and will have to sell at a hefty discount to API4 swaps if they hope to move this coal to China.

They said China took 1.5 million tonnes of South African coal in August and a similar quantity in July but the majority of these sales were heavily discounted.

One European trader said "September Richards Bay prices have been odd, collapsing because there's minimal buying interest and cargoes are soon to load, but slightly further forward prices look steadier."

Europe remains oversupplied, with one utility buying the majority of cargoes sold as has been the case for many months.

(Sourced from Reuters)