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Euro coal prices stable and China growth worries weigh

Steel News - Published on Fri, 23 Mar 2012

Prices of prompt physical coal were largely unchanged again on Tuesday with coal lacking clear direction from fundamentals but macro factors such as China growth worries could start to erode prices

Utilities and traders said that bids and offers were again too far apart to trade and both buyers and sellers were uncertain of the market\'s strength.

One European trader said that \"Everybody\'s trying to figure out how to make money in this market, which is barely moving, so for some to make a slim margin on US coal to Asia is better than nothing or almost nothing.”

They said that more fixed price trades, a term contract settlement price between Australian producers and Japanese utilities and some resumption of Chinese buying would give the market a sharper picture of coal\'s value.

Societe Generale in a research note said that the fundamental situation in the coal market has not significantly changed for months.

SocGen said that CIF ARA prices are forecast at USD 110 a tonne for Q2 and Q3, a slightly bearish view. It said that \"It is characterised by steady but not explosive demand and inventory overhang... We do not expect this situation to change much over the coming months barring an exceptionally hot Asian summer or abnormal tropical rains.”

Source – Reuters

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Posted By : admin on Fri, 23 Mar 2012
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