European API2 coal swaps settle little changed

LONDON, April 27 (Reuters) - European API2 coal swaps
settled little changed on Monday in relatively thin trading.
Coal swaps fell around $2.50 by midday in line with weaker oil
prices but later recovered most of the earlier losses.

European utility selling dominated the physical market.
Utilities were active sellers of surplus July delivery coal at
prices between $58.00 and $61.00 a tonne DES ARA, close to
where API2 swaps were trading at the time.

Industrial power consumption has declined more than
expected due to the econmic slowdown, utilities said. The most
downward pressure has been felt in prompt months because
utilities have more coal than they need.

But the need to conserve cash rather than hold stocks is
likely to put pressure soon on forward prices and narrow the
contango from the current $10.00 a tonne or more, they added.

1730 GMT FRI CLOSE THUR CLOSE WED CLOSE TUE CLOSE

APR API2 $66.00 $66.00 $66.00 $66.50 $66.00

Q2 API2 $61.00 $61.00 $61.40 $62.70 $62.00

2010 API2 $81.25 $83.00 $81.45 $81.40 $82.00

(Reporting by Jackie Cowhig)