Fri Jan 8, 2010 11:44pm IST
LONDON, Jan 8 (Reuters) - Prices of coal cargoes for delivery into Europe and FOB Richards Bay and Newcastle eased by around $2.00 a tonne on Friday as buyers withdrew following sharp rises through the week.
European coal prices rose by over $5.00 a tonne on Thursday on a wave of bullish sentiment due to the cold snap in Europe and Chinese demand for coal.
High gas and oil prices have also given coal values a boost.
"The market was due a correction down. It got totally overheated. I've been saying before Christmas that $95 for Richards Bay was a trigger to sell again," one broker said.
Utilities said the current cold snap needs to last for several weeks for coal stockpiles to be substantially reduced and new buying to become necessary.
Fundamentals are much stronger in Asia. Chinese utilities in coastal and central China are running out of coal because severe weather is disrupting domestic fuel transport, prompting increased demand for imported material.
India, too, may soon seek emergency coal imports to combat acute shortages which are causing power cuts [ID:nSGE6070D8].
TRADES
No fresh fixed-price physical trades were reported on Friday.
PRICES
A March delivery cargo was offered this afternoon at $94.00 a tonne with no bid against it.
A March loading South African cargo was offered at $93.00 with a bid of $90.00, down $2.00 from Thursday.
(Reporting by Jackie Cowhig; Editing by Keiron Henderson)
Source: http://in.reuters.com/article/oilRpt/idINLDE6071S120100108
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