Market overview from globalCoal for December 01

Coal prices initially moved higher in early trading before giving up their gains later on through the day. The physical market saw a greater amount of liquidity especially on the Richards Bay market with a number of trades on the curve going through. Through the afternoon oil gave up some of its previo9us gains and the wider energy complex also tracked lower. Brent ended the day lower by ~$2/bbl at $108.50/bbl, this had the effect or eroding most of the mornings gains on coal. All the main coal hubs dropped back and ended the day with modest gains of ~$0.25c.

Asian stocks surged higher after major central banks took action to lower borrowing costs. In a move to stimulate higher growth rate, People's Bank of China (PBOC) lowered the bank reserve levels, making more money available for lending. China's National Development and Reform Commission (NDRC) announced measures to cap domestic coal prices, which may have some impact on China's coal import next year. During Asian trading hours, phys NEWC saw bids of $108.50 and $110.25 for Jan and Mar respectively while the best offer came in Feb only at $112.50. (*)

globalCoal trades this week

	Product	Expiry	Price	Volume	Origin	Delivery Point	EFP
30/11/2011	SWAP NEWC Index	Q1'12	$ 111.00	15000
30/11/2011	SWAP NEWC Index	Q1'12	$ 111.00	15000
30/11/2011	SWAP NEWC Index	Q1'12	$ 111.00	15000
30/11/2011	SWAP NEWC Index	Q1'12	$ 110.60	15000
30/11/2011	SWAP NEWC Index	Q1'12	$ 111.35	15000
30/11/2011	SWAP NEWC Index	Q1'12	$ 111.35	15000
01/12/2011	SWAP NEWC Index	Q1'12	$ 112.00	15000
01/12/2011	SWAP NEWC Index	Q1'12	$ 112.00	15000
01/12/2011	Phys API#4 Index	Q1'12	-$ 1.00
01/12/2011	Phys API#4 Index	Q3'12	-$0.85
01/12/2011	Phys NEWC (FOB Newcastle)	Mar'12	$111.50				EFP
01/12/2011	Phys API#4 Index	2013	-$0.50
01/12/2011	Phys API#4 Index	Feb'12	-$1.20