Reuters reported that prompt physical coal prices fell by USD 1 a tonne on Friday amid a flurry of Q4 trades.

Four December loading South African cargoes traded at USD 83.75 a tonne FOB Richards Bay, USD 2.50 lower than the previous day's traded level.

Traders and utilities said that there is a substantial amount of Q4 South African coal in the hands of traders which they are now offering and this is helping to weaken prices. They said that the sellers of the four December cargoes were all different companies but one buyer took at least three.

One trader said that "There was a bid at USD 79.50 a tonne for November South African and that doesn't look like a ridiculous number.” They said that both India and China, the two biggest spot buyers of thermal coal, remain sidelined, and this will further weigh on prices.

India's imports of coal in general and South African in particular have been strong all year despite the current lull in spot buying.

India took 1.7 million tonnes of South African coal in September, down from 1.6 million in August.