Market overview from globalCoal for July 28

Physical coal markets gained today with oil and currency again providing some direction. The continuing strike in South Africa has not had a strong impact on pricing but is providing a floor for RB physical prices. Worries around the US debt situation played on the value of the US$ which again lost value helping coal prices marginally higher, rising oil prices also added a further bullish tone. Coal markets were generally up ~$0.25 whilst oil rose to end the day just above at $118.25/bbl, up $0.75/bbl.

Weakness in European and US markets overnight led markets south in Asian hours. Concerns about US debt ceiling continue to weigh heavily on the market, reflected in Newcastle being offered at 119.25 in Asia - down ~0.75cents from yesterday. Nearest bid was $117, suggesting more falls to come. Indonesia has not suffered the same weather related issues as in previous years with many producers well ahead of production schedules. China seems to be in a buying mood, albeit in smaller volumes and at lower levels.

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
26/07/2011	Phys RB1	Aug'11	$ 117.00	150000
26/07/2011	Phys API#4 Index	Q4'11	$ 1.25	510000
26/07/2011	Phys API#4 Index	Oct'11	$ 1.50	75000
28/07/2011	Phys RB1	Sep'11	$ 117.50	50000
28/07/2011	Phys ARA (DES)	Sep'11	$ 125.00	50000	ACPRS	Ams/Rot