Market overview from globalCoal for July 5

Prompt DES tonnes changed hands early on today, with an August cargo of Colombian trading at $87.75/t DES Rott. In the Richards Bay market, bids were restrained to a high of $90.20/t FOB, down from yesterday's best bid of $90.60/t FOB. Paper values lost ground at the front of the curve, but managed to make small gains at the back end, with cal 13 API2 and API4 both up around $0.15/t by the end of the day. Oil ticked higher over the session, and was up by $1.12/bbl near close of play to sit at $100.89/bbl.

Acitivity in the physical Newcastle market was more subdued today, with values edging down but no great rush by participants to transact. September was offered at the level at which it traded yesterday, at $90 in 25KT, with no strong bid against it. October values were wide, but down on the day before. Many producers are holding off selling tonnage for Q4 and focussing on the prompt. Non vanilla physical values remain as subdued as ever, with very large bid-offer spreads observable for Indian and Australian material. Scant RB interest in Asian markets with buyers anticipating prices to come off further as several cargoes, defaulted by Chinese customers, are being diverted to other markets especially India. Sustained demand for Indo origin coal seen in the Indian market today, as a July 5800 gar single mine coal in 50kt being offered at $81/mt and was bid at $79/mt FOB. Dharmra port on ECI reported a waiting period of 21 days.

globalCOAL Trades this Week

	Product	Expiry	Price	Volume	Origin	Delivery Point	Add.Terms
02/07/2012	Phys RB1	Aug'12	$ 90.40	50,000
02/07/2012	Phys RB1	Aug'12	$ 92.00	75,000			EFP
03/07/2012	Phys API#4 Index (FOB RB1)	Oct'12	-$ 0.30	75,000
03/07/2012	Phys API#4 Index (FOB RB1)	Oct'12	-$ 0.30	75,000
03/07/2012	Phys NEWC (FOB Newcastle)	Oct'12	$ 90.50	25,000
03/07/2012	Phys RB1	Aug'12	$ 91.50	25,000
04/07/2012	Phys NEWC (FOB Newcastle)	Sep'12	$ 90.00	25,000
04/07/2012	Phys RB1	Q3'13	$ 95.50	75,000
05/07/2012	Phys ARA (DES)	Aug'12	$ 87.75	50,000	C	Rott	EFP