Reuters reported that South African physical prompt coal prices dropped by USD 1 to USD 3 a tonne on Thursday, pulled lower by heavy selling in the swaps market, while buyers stayed on the sidelines.

TRADES

A September delivery DES ARA cargo traded at USD 86.50 a tonne, down over USD 1.00 from Wednesday's bid level.

PRICES

An August loading South African cargo was bid at USD 82.75 and offered at USD 84.50, down around USD 1.50 from Wednesday's last trade.

A September loading South African cargo was bid at USD 82.00 and offered at USD 85.00, down around USD 3.00 from the previous day's bid.

An August delivery DES ARA cargo was bid at USD 86.00 and offered at USD 86.50, down USD 1.00 on the offer

One European trader said “A support level is going to be found soon. We're close to it now and I don't think there's much room to fall.”

API4 coal swaps sold heavily throughout the day, in line with weaker power prices and helped pull physical prices lower.

Source - Reuters

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