Euro Coal-gains with gas

LONDON: European coal prices firmed along with gas prices on Thursday, traders said.

Coal prices for delivery in January with destination Amsterdam/Rotterdam/Antwerp (DES ARA) traded at $91.25 a tonne at 1730 GMT, up over $2 from the previous close of $89, according to brokers.

South African cargoes for delivery in January were trading at $88.20 a tonne, up two dollars from where they settled on Thursday.

Traders said that the rise in prices was largely a result of brisk buying by utilities and trading houses amid rising prices for natural gas.

"Two particular players were very active today, which is hard to fathom because the fundamentals remain poor," said one trader.

European benchmark gas prices also rose, with contracts for delivery next summer on Britain's National Balancing Point (NBP) gas hub up 1.3 percent to 62.85 pence per therm.

Gas prices got a lift from increased UK demand at the front of the curve and a 1 percent gain in Brent crude oil prices amid rising tension in the Middle East.

Prices for delivery next year rose to 47.15 euros per megawatt-hour (MWh), down 12 cents from Wednesday.

The bullish market sentiment also impacted the coal futures market, where the API2 2013 coal swaps contract rose to $96.60 a tonne, up 1.4 percent from Wednesday's close and its highest trade since Oct.11.

Coal prices have fallen around 30 percent since the third quarter of last year amid increased supply.