* Newcastle price forecast cut to $95/T - BoAML
* Sept S.African trades at 65 cents below API4
LONDON, July 16 (Reuters) - Physical prompt coal prices were little changed on Monday, but saw some support from firmer coal swaps values.
Swaps were bid higher in the afternoon in line with steady oil, which held above $102 on hopes that China would step up efforts to boost its economy.
On Sunday, China’s official Xinhua news agency quoted Premier Wen Jiabao as saying measures to stabilise the economy were working and the government would step up efforts in the second half of the year, sparking expectations of further easing.
Few fresh trades were reported, at prices little changed from Friday’s levels.
Fundamentally, coal remains oversupplied in both the Atlantic and Pacific markets, despite a strong coal burn across much of Europe and steady imports into India and China.
Prices are likely to remain stuck in a range for the next 6-9 months, Bank Of America Merrill Lynch said in a research note on Monday.
“We believe prices will remain relatively range-bound in the next 6-9 months and establish an average second half 2012 target of $91/T for (FOB Newcastle) coal,” BoAML said.
“We also sharply reduce our Calendar 2013 Newcastle FOB forecasts to reflect this weaker environment, from $110 to $95/T,” the note said.
A September loading South African cargo traded at 65 U.S. cents a tonne below the API4 index.
A September loading Newcastle parcel traded at $86.25 a tonne FOB on globalCOAL.
An August loading South African cargo was bid at $83.75 and offered at $92.00, down 25 cents on the bid.
A September South African cargo was bid at $85.50 and offered at $85.75, up slightly on the bid.
An August delivery ARA cargo was offered at $86.50 earlier, before rising to $87.50 in line with swaps’ gains.
A September DES ARA cargo was bid at $86.50 and offered at $88.50, little changed. (Reporting by Jacqueline Cowhig; editing by James Jukwey)