Reuters reported that physical prompt thermal coal prices were again little changed on Tuesday although stronger oil gave some support in earlier trading.

TRADES

An October DES ARA cargo traded at USD 90.25 a tonne on globalCOAL, little changed

PRICES

An August loading South African cargo was bid at USD 83.00 and offered at USD 91.50, down 75 cents on the bid

A September South African cargo was bid at USD 86.50 and offered at USD 87.50.

An August delivery ARA cargo was offered at USD 87.30, up 50 cents

A September DES ARA cargo was bid at USD 88.75 and offered at USD 88.80 later in the day

Oversupply is likely to continue through the year, with a very slow reduction in the surplus, as producers trim output and brace themselves for a period of stagnant prices.

Traders and end users said that while an event that would shift the market balance enough to propel prices out of their current range cannot be ruled out, it is extremely unlikely this year.

A spate of bomb attacks and strike threats in Colombia, one of the world's top five coal exporters, has had no impact on prices because there is plenty of spot coal available. Even if workers at Colombia's Fenoco railway or Prodeco's La Jagua mine do strike as threatened, end-users said they would welcome a delay to shipments given the current supply glut

Source - Reuters

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