Bloomberg reported that coal for shipment from South Africa's Richards Bay, site of the world's largest export terminal for the fuel, fell from a record as buying by Indian customers waned.

The report said that India's economic growth held at the weakest pace since 2005 in the first quarter and May's industrial output was the slowest in more than six years.

Mr Andrew Wells an assistant editor at Petersfield of McCloskey Group Ltd said that ¡°Everyone expected them to follow what they did last year and buy heavily, but that did not bear fruit. They were much better stocked at ports and plants than this time last year.''

According to McCloskey, Richards Bay export prices declined USD 2.80 or 1.6% to an average of USD 174 a ton in the week ended July 11.

Prices at Newcastle, Australia, a benchmark for Asia, also fell from a record, dropping USD 6.79 last week to USD 188 per ton.

Benchmark coal prices rose to records this year, cutting generators' buying power in countries such as India where the government caps electricity prices. Indian companies bought more South African coal in 2007 after supplies were curbed by fewer Chinese exports and port bottlenecks in Australia.