Market overview from globalCoal for December 22

Although volatility was limited in the coal market today we at least saw some activity from the physical market. Wth a number of trades on both the RB and DES contract today it was this week's busiest day. Overall values rose around $0.25 supported by the front end physical buying and marginally stronger Brent crude and Euro markets. Brent ended the day ~$0.30/bbl higher at ~$108.00.

Chinese domestic price has been falling steadily (from RMB 840-850 to RMB 810-820 this week) as the implementation date of the NDRC price cap draws nearer. Market participants feel that it is evident that the price cap will dampen China's import volume, at least for the first half of 2012. Meanwhile, weather forecast points to heavier rains in Queensland region which might affect coal supply out of Australia and provide some price support to the softening market. (*)

globalCoal trades this week

	Product	Expiry	Price	Volume	Origin	Delivery Point	EFP
20/12/2011	Phys API#4 Index	Jan'12	-$ 0.20	50000
20/12/2011	Phys RB1	Jan'12	$ 105.00	50000
22/12/2011	Phys API#4 Index	Jan'12	$1.60	25000
22/12/2011	Phys RB1	Mar'12	$107.50	50000