Producer buying boosting prices?

Washington DC (Platts)--5Aug2004

Market talk that a major producer of South African Richards Bay coal is short
for at least one October loading cargo and needs to cover has helped push
Richards Bay fourth quarter numbers up from around $62/mt to $64/mt bid and
$67/mt offered on the Global Coal electronic screen trading system. Producers
and traders said one producer in particular has been keen to buy, possibly
because railings problems in South Africa will mean that the final total of
Richards Bay exports is significantly lower than the 68 million mt target.
However, some traders who seem confident that coal prices for the fourth
quarter have further to rise as hidden consumer buying interest emerges, have
also been aggressive bidders. The next September or October trade for Richards
Bay on Global Coal is expected to go through at around $64/mt FOB, given the
level of bids and offers.

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