European coal prices edged higher on Monday in a quiet market, while physical cargoes were untraded. Prices for non-deliverable API2 coal forwards expiring in the fourth quarter gained 20 cents to $75.25/tonne, while the calendar 2015 contract rose 25 cents to $78.00 after hitting a two-month low of $77.50 earlier in the day. According to trading platform globalCOAL, no physical ARA, Richards Bay or Newcastle cargoes had traded by the time of writing.
Coal imports by China, which account for about a quarter of global trade in the material, fell to 18.86 million tonnes in August - near a two-year low. China's coal consumption has been hit by a combination of slower economic growth, increased hydropower output and Beijing's fight against pollution, causing local prices to slump to a six-year low. The 18-percent price drop in August shipments was exacerbated by fears Beijing would roll out policies to restrict coal imports with high ash and high sulphur, as a way to aid those on a growing list of loss-making miners.
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