Euro Coal-Stable despite S.Africa strike threat

Thu Apr 29, 2010 10:08pm IST

LONDON, April 29 (Reuters) - South African and DES ARA coal prices ended the day little changed despite a strike threat from May 10 which could disrupt South African exports.
SATAWU the transport workers union said on Thursday it had been given the go ahead to strike from May 10 after wage talks with state operator Transnet broke down. [ID:nWEA9175]
Traders said the strike threat had already been factored into prices earlier this week and in any case, fundamentals have had little to do with the recent rise in prices to $94.00-$100.00 a tonne from $81.00 two weeks ago.
Indian traders have emerged as sellers of South African prompt cargoes which they are trying to replace with cheaper Indonesian material.
However, Indonesian prices are also on the rise due to heavy rains disrupting supply. Bayan has already declared force majeure but most other Indonesian exporters' shipments are also affected to some extent [ID:nJAK486152].
"If the Indians think it's that simple to sell South African and replace it with Indonesian low-grade or anything else, they will soon realise they're wrong," one trader said.

TRADES
Three June loading South African cargoes traded on globalCOAL at $94.00, $94.00 and $94.25 a tonne FOB Richards Bay, up 50 cents from Wednesday.

PRICES
A June loading South African coal cargo was bid at $93.25 and offered at $94.00, up 25-50 cents. A July loading South African cargo was bid at $94.00 and offered at $95.00, down 50 cents.
A June delivery DES ARA cargo was bid at $87.50 a tonne, little changed. A July cargo was bid at $89.00 and offered at $89.50 a tonne DES ARA.
For the latest oil market report please click on [O/R]. The latest UK power and gas report can be found at [NG/GB]. (Reporting by Jackie Cowhig)

Source: http://in.reuters.com/article/oilRpt/idINLDE63S29L20100429?sp=true

Comments