South African Commodity Coal Prices Rise as Europe Boost Demand

Commodity prices for coal shipped from South Africa?s Richards Bay, the continent?s biggest export facility for the fuel, rose for the first week in three on speculation colder weather in Europe may boost demand.

Export prices advanced 14 cents, or 0.2 percent, to an average $84.94 a metric ton in the week to Sept. 24, according to industry researcher IHS McCloskey. European coal prices climbed for a fourth day today.

?Prices in Europe are going up mainly because of colder temperatures and stronger European energy markets,? said Darren Malone, an analyst at IHS McCloskey in Petersfield, England. ?South Africa may be reacting in response to that.?

Temperatures fell as low as minus 4.4 degrees Celsius (24 degrees Fahrenheit) in Tyndrum, Scotland, on the night of Sept. 25, the coldest September night in about 30 years, said Helen Chivers, a spokeswoman for the U.K. Met Office in Exeter, England. At Exeter International Airport, the low that night was minus 1.1 degrees Celsius, she said. In the London area, the low was normal at about 9 degrees Celsius, she said.

Coal accounts for about 30 percent to 40 percent of U.K. power generation, Malone said.

Coal for delivery to Amsterdam, Rotterdam or Antwerp with settlement next year climbed 25 cents, or 0.3 percent, to $99.25 a ton at 11:17 a.m. in London. The fuel rose as high as 99.4 cents, the highest price since Aug. 10.