Market overview from globalCoal for August 22

Paper coal markets opened the week lower as many energy markets took their lead from a bearish oil market. Hope that oil exports from Libya may resume if Col Gaddafi loses power sent Brent lower by nearly $3.50/bbl and gas, power and coal all followed. Through the day we saw a recovery in coal as physical markets stubbornly refused to fall in tandem with oil. By the close of play the early losses had been made back and coal actually finished higher by ~$0.50 across the board.

Prices in Asia in the prompt were offered at $ 122.00/mt for Oct'11 and bid/offered $121.00/$123.50 in the Nov'11 Phys NEWC market during Asian business hours, which is largely in line with where the market ended on Friday. There are a few rumours floating around on whether the Chinese will cut their VAT to 13% from 17% on imports to help preserve their own natural resources, but there is no concrete proof of this being implemented at this point. Traders are keeping closeful watch over the domestic Chinese price as well, which have softened in the past few weeks. (*)

globalCoal trades this week

Product		Expiry	Price	Volume	Origin	Delivery Point	EFP
22/08/2011	Phys RB1	Oct'11	$ 118.00	75000			EFP
22/08/2011	Phys RB1	Oct'11	$ 118.00	75000