Market overview from globalCoal for April 11

The ongoing bearish tone continued today as coal markets slipped lower in thin trading. The API#2 contract lost most value as the continuing influx of US coal into Europe weighs on pricing, this was confirmed with a $95.50 May DES trade. The FOB contracts fared better with May RB1 tonnes going through at $102.60 and $102.70 but still lost ground with both the API#4 and NEWC lower by ~$0.25 on the Cal13. The bearishness in coal was a disconnect from other energy markets with Euro power broadly unchanged, Brent oil up marginally by ~$0.25/bbl to finish above $120/bbl and a slightly weaker US dollar.

A lacklustre day in Asia saw the market trending sideways. Most are presuming the market may show some direction early next week, with Chinese traders optimistic of improvements in market fundamentals. Interest was seen at $85/t CFR South China for 4900nar material delivered in early May, while interest in 5500nar material from Australia was seen at ~$92.50 for delivery in May and June. (*)