Reuters are reporting on Thursday that the prices for prompt coal cargoes delivered into Europe and FOB South Africa's Richards Bay fell by around 50 U.S. cents a tonne on Wednesday.

As a result of prices not responding to reports of heavy rain hitting Indonesian exports, sellers have held back from offering cargoes.

The seasonal rains in Indonesia have sharply cut production at some coal mines in South Kalimantan and held up ship loadings. PT Bayan, one of the country's largest exporters, declared force majeure on Tuesday on August cargoes.

If this continues for another week or more force majeures or at best, shipment delays, could occur. So far there has been minimal price impact due to coal available from Australian ports.

This has resulted in certain sellers of prompt South African cargoes holding back until the Indonesian situation becomes clearer.

Presently Chinese buyers are willing to pay more than $104.00 a tonne CIF for South African coal.

The implied freight or differential between FOB Richards Bay and DES ARA prices, has been less than $4.00 for the past two weeks, far narrower than the physical freight cost of shipping to Europe - currently around $10-$12 a tonne, another factor dissuading sellers from chasing European sales.

Few trades were reported on Wednesday - the European market remains thin with buyers unlikely to re-emerge until late August.

A September loading South African cargo traded at $89.50 a tonne FOB Richards Bay via brokers, down around 50 cents from Tuesday. An October loading South African cargo also traded at $89.50, on globalCOAL.

An October loading South African cargo was offered at $89.50 a tonne FOB Richards Bay after the earlier trade at the same level.