LONDON (Reuters) - Coal physical and swaps prices plunged by more than $20 on Wednesday as the market began a long-awaited correction.

At least one physical coal cargo has traded almost $20 lower than prices indicated on Tuesday and bids have pulled back by over $20 from Tuesday's levels for South African cargoes FOB Richards Bay and multi-origin coal delivered into Europe.

Australian coal FOB Newcastle reached $201 a tonne earlier in the week and Newcastle swaps hit similar numbers. Newcastle swaps on Wednesday began trading at $192, $185, $183 and $177.

Richards Bay cargoes traded close to $180 early in the week but bids had pulled back to $150 by early afternoon Wednesday.

DES ARA September coal had traded at $226 a tonne on Tuesday but traded again at $207 on Wednesday and was bid still lower.

Traders on Monday said they could not see where the market would reach a top.