LONDON: European physical coal prices inched up on Friday but low demand due to a mild winter in Europe and increasing shipments mean the market remains oversupplied.
Cargoes for delivery in April to the ports of Amsterdam, Rotterdam and Antwerp (ARA) were trading at $73.50 a tonne at 1610 GMT, up $0.40 from the previous settlement of $73.10.
In the futures market, API2 coal contracts for delivery in 2015 edged up $0.46 to $80.75 a tonne at on thin volume with 5 lots traded.
Futures fell below $80 a tonne on Wednesday, a low since late 2009 and down more than 40 percent from a 2011 peak.
Weak demand following a mild winter in Europe and healthy supply has created a global oversupply of coal. Supply is expected to rise further in April as coal miner Drummond restarts its exports from Colombia.
Drummond was forced to halt its exports from Colombia pending installation of automated ship loading facilities required by a law which came into force in January.
Societe Generale analysts said slowing Asian demand for coal has been another drag on prices. "There is plenty of coal to go around, plenty in stock and prices show it," analysts said in a research note this week.
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