Reuters reported that prompt thermal coal prices rose by around USD 1.00 a tonne on Thursday, boosted by oil's rally to USD 112 and active coal swaps buying which pulled physical values higher.

A November South African cargo was bid at USD 84.50, up USD 1.00.

A December South African cargo was bid at USD 86.25 and offered at USD 87.50, also up USD 1.00.

A December DES ARA cargo was bid at USD 87.25, little changed, with no offer against it.

Players were buying coal swaps to protect their hedged positions rather than because of a new bullishness. Market's overall outlook for the balance of the year remains bearish.

Supply has reduced. Cuts are being made at mines in Indonesia, Australia, Russia and the United States but the effect is not being felt yet due to tepid spot demand.

Source - Reuters

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