LONDON: European physical coal prices dipped on Wednesday as forecasts for continued mild weather into spring dulled demand and meant stocks would remain plentiful.
Cargoes for delivery in April to the ports of Amsterdam, Rotterdam and Antwerp (ARA) were at a bid/offer spread of $76.00-$77.00 a tonne on Wednesday, below the close of $77.60.
European physical coal prices have been largely on the decline for the last two weeks as milder-than-average temperatures have dulled demand and stocks have built up.
The mild and wet weather is forecast to continue into spring in northern Europe, according to meteorologists. "European physical coal is looking really bearish now," a coal trader said.
"Port and utility stocks are full to the brim and the weather outlook suggests the mild winter will directly move into a mild spring, so the demand side is bearish as well."
Prices in South Africa also dipped, with cargoes for delivery in April down 10 cents at $75 a tonne.
South African power utility Eskom said on Wednesday the country's power system was "severely constrained" and urged its customers to reduce demand. Eskom is battling to keep the lights on in Africa's largest economy as it races to build new plants and meet rising demand.
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