Market overview from globalCoal for August 8
Tuesday, August 9 2011 - 01:16 AM WIB
Coal markets took their time but finally succumbed to wider commodity and equity sell offs. With energy and metals prices falling on demand worries following the US credit downgrade and equity sell offs around the world the tone was apparent for a bearish session. Front month Brent fell by $3.50/bbl to ~$106.00/bbl whilst the US$ was stronger helping to add to the bearish factor for US$ denominated markets. Coal markets slid in early trading and never rebounded. All coal hubs lost ~$1.50 along the curve, whilst the FOB markets fared slightly better on the prompt only falling by ~$1.25.
Markets fluctuated greatly today with equities falling between 2% in Australia to 6% in Korea, in response to credit downgrades in the US. Yet coal prices were only 50cents lower at the opening, with Newcastle coal offered at $118 and bid at $117.50 for September. Most producers in Indo have seen few bids in the market, and traders are finding margins tough in a flat to falling market. (*)
globalCoal trades this week
| Product | Expiry | Price | Volume | Origin | Delivery Point | EFP | |
| 08/08/2011 | SWAP NEWC Index | 2012 | $ 123.50 | 60000 | |||
| 08/08/2011 | Phys RB1 | Dec'11 | $ 118.40 | 50000 | EFP | ||