Euro Coal-Prices drift down, Carbopego buys 2 cargoes

Fri Apr 27, 2012 4:45pm GMT

* China railway maintenance ends

* June DES ARA bid at $92.50/T

LONDON, April 27 (Reuters) - European prompt physical coal prices were slightly weaker by around 50 cents on Friday, pressured by weak fundamentals in the Atlantic and a price standoff between Chinese buyers and sellers in the Pacific.

Patchy Iberian spot demand has been one of the few bright spots in the sluggish European market in recent months and while this is likely to continue, it will not be nearly enough to support sagging prices.

Portugal's Carbopego on Friday bought 340,000 tonnes for summer delivery but declined to specify the price achieved or the suppliers.

The coal bought was "of various origins," not all Colombian, the sources said.

A large, Colombian producer and exporter was expected to win the tender.

Elsewhere in the Atlantic, trading was subdued with no fresh spot deals reported.

Pacific demand has also been patchy with strong buying interest from South Korea and Taiwan but Chinese buyers have been slow to visibly pursue standard-grade spot purchases.   Continued...

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