Market overview from globalCoal for August 5

Despite large-scale overnight selling in equities and commodities, this morning saw a much needed bounce on London opening, mainly in response to positive US employment data. An early sell-off in the financial coal markets largely reversed itself by midday before closing $0.70 down on the Cal 12 contracts but just $0.50 on the front of the curve as time-spreads narrow. The physical market was active again with index qualifying deals being concluded on all three of the major hubs (ARA, Richards Bay and Newcastle). Meanwhile, front month Brent crude endured a rollercoaster day, trading in a $5.50 range before ending the day (@17:00) almost flat on yesterday at ~$117.20.

Due to limited demand in Asia, prices are facing downturn, yet there were little signs in asia today. This view is also supported by recent tender result by one of JGIs. Many sellers are chasing for limited number of buyers. One of the JPUs currently has a closed tender in the market, and people are waiting for its result to be out to see new price indication. In addition, some of coal fire power stations in Japan ceased their operations within past few days and this also softens the coal demand within North Asia. (*)

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
04/08/2011	Phys RB1	Oct'11	$ 119.25	75000
05/08/2011	Phys NEWC (FOB Newcastle)	Sep'11	$ 118.50	25000
05/08/2011	Phys NEWC (FOB Newcastle)	Sep'11	$ 118.50	25000
05/08/2011	Phys RB1	Dec'11	$ 119.60	75000
05/08/2011	Phys RB1	Oct'11	$ 118.25	50000			EFP