Thermal coal futures prices steadied on Thursday, having touched a more than 7-year low the previous session, as expectations of strong Russian exports weighed after the rouble's collapse. European API2 2015 coal futures edged up 0.3 percent to $68.35 a tonne at 1249 GMT, just above the low of $68.00 touched on Wednesday, which was their weakest level since 2007.
Exports from one of the world's top five coal sellers, Russia, have been rising this year with the help of a weakening rouble which has shielded producers from the falling coal prices to an extent.
The rouble, which fell against the dollar by as much as 20 percent at one point earlier this week under pressure from plunging oil prices, is now trading some 45 percent lower for the year to date, while coal futures have fallen around 20 percent over the same period.
"It just means they are not going to shut mines," a trader said, adding that it gives Russian producers more "headroom" than their competitors on the global market.
Other bearish factors in the coal market this week included the world's biggest producer and importer China's decision to cut export tariffs for all unprocessed coal to three percent from the current 10 percent in 2015.
"China protect their domestic business but at these international levels I don't feel any immediate threat from Chinese exports," a second trader said.
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