South African coal prices rise

According to recent analysis from Thompson Reuters Dry Freight reports, South African physical coal prices rose in brisk trade on Tuesday, ranking as the top gainer in the coal markets and prompting talk that a major trading house was buying cargoes to back up a futures position.

Physical coal to be delivered from South Africa in December last traded at US$ 85.50, up US$ 1.40 from Monday’s settlement.

The volume on globalCOAL for South African contracts traded at 150,000 t on Tuesday, more than double the usual figure.

Observers say stockpiles of South African coal at the Richard’s Bay terminal will continue to grow in the coming weeks because of the likely play between the physical and derivatives markets.

Inventories at the South African port last month grew to 6 million t. In August, inventories at the port stood at 1.4 million t.

Adapted from press release by Sam Dodson

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