Market overview from globalCoal for June 08
Saturday, June 9 2012 - 12:51 AM WIB
Markets ended the week with losses, with paper markets getting hit early on and never really recovering. IN the physical market, DES tonnes were offered around $0.50/t lower than the previous day's offers, while heavier falls were seen in the Richards Bay market, where July loaders were offered at $84.50/t, having been bid at $86/t FOB the day before. By the end of the session, Cal 13 API2 had slipped around $1.00/t, while the same contract on API4 lost nearer to $1.50/t. Oil prices drifted in line with coal, and near close of play front month Brent crude was off $1.93/bbl to sit at $98.00/bbl.
With all factors pointing towards weak fundamentals, market participants are predicting prices to continue softening, at least until August when higher electricity demand in the Summer could prompt the Chinese to start buying again. Some of the Chinese buyers are also heard to be seeking better contractual and payment terms as the balance tips to favour buyers.
globalCoal trades this week
| Product | Expiry | Price | Volume | Origin | Delivery Point | EFP | |
| 04/06/2012 | Phys NEWC (FOB Newcastle) | Sep'12 | $ 92.00 | 25,000 | |||
| 06/06/2012 | Phys ARA (DES) | Aug'12 | $ 87.25 | 50,000 | ACPRS | Ams/Rot | EFP |