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Monday, 15 February 10
EURO COAL PRICES SOFTEN AS CHINESE LUNAR NEW YEAR HOLIDAYS START


Prices of prompt cargoes of coal for delivery into Europe weakened last week on a lack of European demand and market nerves over the possible impact of slower Chinese imports, traders said.

The market's focus has been on Chinese demand and indications of a slowdown due to the Lunar New Year holiday this week have prompted some players to sell coal swaps, which has pulled down physical prices. China's imports of South African coal peaked in December but fell by 55 percent in January, on the face of it a bearish sign.

India's imports from South Africa also fell between December and January by 39 percent but this was due to producers maximizing end-year exports rather than a drop in Indian need, producers said. Continued strong Asian demand for steam coal will help push prices higher during 2010 but not to the record levels seen in 2008, they said.
Source: BloombergUTV



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