Market overview from globalCoal for August 3

Bearish sentiment continues unabated in commodities and equities. The financial coal market also saw a minor correction today, falling by ~$0.30 on the benchmarks Cal 12 contracts across the three main indices. The physical market was fairly active with index qualifying deals being concluded in the ARA and Richards Bay hubs at levels $0.50 higher than yesterday as relatively aggressive buying bucks the energy market trend. Meanwhile, front month Brent crude fell $2.75 to end the day at ~$113.75 (@17:00).

Despite markets tumbling more than 2% in Asia, the coal market remained resilient. China's interest in 5500nar coal with higher ash (20%+) is still there, but with reduced expectations - around the $110 CFR level basis 5500nar. A new round of Korean tenders for Q4'11 will be launched shortly, with prices expected to again be lower than previous months results. (*)

globalCoal trades this week

Product		Expiry	Price	Volume	Origin	Delivery Point	EFP
01/08/2011	Phys ARA (DES)	Sep'11	$ 125.50	50000	ACPRS	Rott	EFP
01/08/2011	Phys ARA (DES)	Oct'11	$ 126.00	50000	ACPRS	Ams/Rot	EFP
02/08/2011	Phys ARA (DES)	Oct'11	$ 126.25	50000	ACPRS	Ams/Rot
02/08/2011	Phys ARA (DES)	Oct'11	$ 126.25	50000	ACPRS	Rott	EFP
03/08/2011	Phys RB1	Q4'11	$ 120.50	150000
03/08/2011	Phys ARA (DES)	Sep'11	$ 126.25	50000	ACPRS	Rott	EFP
03/08/2011	Phys ARA (DES)	Oct'11	$ 126.70	50000	ACPRS	Ams/Rot	EFP