Market overview from globalCoal for July 25
Tuesday, July 26 2011 - 02:02 AM WIB
The coal market struggled to get going today with a very quiet start to trading on both physical and paper markets. Early on we saw paper fall away slightly by ~$0.25 but by the end of the day we'd seen a marginal recovery. The front end of the curve ended the day higher by ~$0.50 across the main coal hubs whilst the curve products stayed broadly unchanged. Although the RB market was higher in the prompt there was not the expected possible gains on the news of strikes beginning at mines in South Africa, mainly due to healthy stock levels. Oil dropped away by $0.75c ending the day at $117.90/bbl.
The bid/offer spread on Newcastle coal widened today, with September bid at 115.50 and best offer 120.50 in Asian hours. Bearish Korean Genco tender prices suggest there is further weakness in the prompt. Indonesian coal was also said to be retracting, with few genuine bidders in the market for August cargos. (*)
globalCoal trades this week
| Product | Expiry | Price | Volume | Origin | Delivery Point | EFP | |
| 25/07/2011 | Phys ARA (DES) | Oct'11 | $ 125.00 | 50000 | ACPRS | Ams/Rot | |
| 25/07/2011 | Phys RB1 | Oct'11 | $ 119.00 | 50000 | |||