European coal prices fall on better Colombia sales
Physical prompt coal prices continued this week's downward trend as prospects for rising Colombian exports and weak European demand pulled down the market, traders said.
A Colombian rail strike led to a supply squeeze in the Atlantic basin early in August, but analysts said the seaborne Atlantic coal market would return to a surplus by the end of August as Colombia ramps up exports.
"The return of Colombian exports is colliding with ongoing weakness in European demand, so prices are going down every day as long as Colombian exports are going up," one coal trader said. "But this trend will stop soon, once Colombian exports are back to normal at some point next week."