LONDON: Prompt South African coal prices eased below the $81 per tonne mark on Friday amid few signs of demand in an oversupplied market.
One January-loading South African cargo traded today at $80.95 a tonne FOB, down 5 cents from the previous day's deal level as sellers continued to outnumber buyers.
Australia's thermal coal price benchmark dropped to around $82 per tonne this week, down from over $84 per tonne last week, with Chinese buyers continuing to be relatively well-stocked ahead of winter.
South African producers, which have take-or-pay contracts to move coal by rail to Richards Bay Coal Terminal, every year tend to push exports through at maximum capacity until the end of December, adding to the glut weighing down prices.
Exports this year are expected to reach 70 million tonnes as a result of efficiency improvements and capacity expansion by state rail operator Transnet.
But producers have limited exports due to depressed international prices, the head of Transnet's freight rail unit said on Wednesday.
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