Market overview from globalCoal for June 21
Thursday, June 21 2012 - 09:49 PM WIB
Coal markets initially fell away in early trading but this fall was quickly reversed and from there we saw the prompt market gain throughout the day. The bullishness was confined to the front end of the curve though and was despite bearish external factors. Some perceived tightness on physical markets helped keep the front end of the curve higher, giving paper a boost despite weaker gas and Euro markets. Front month Brent crude extended its recent losses ending the day at lower again by over $2/bbl to hover just above the $90/bbl level. API#2 and API#4 Cal13 were both broadly unchanged on the day.
After the sharp drop in domestic coal prices, more defaults by Chinese buyers have been reported. This coupled with high stockpile and port congestions are clear indications that China would not be making significant purchases in the short term. India continues to provide some relief where a buyer is heard to be bidding $49.50/mt FOB for 4500GAR Indonesian coal for Q3 period (50kt per month).
globalCOAL Trades this Week
| Product | Expiry | Price | Volume | Origin | Delivery Point | Add.Terms | |
| 18/06/2012 | Phys HA Aus 5500 | Jul'12 | $ 79.00 | 125,000 | |||
| 18/06/2012 | Phys ARA (DES) | Aug'12 | $ 85.00 | 50,000 | C | Rott | EFP |
| 20/06/2012
|
Phys RB1 | Aug'12 | $ 83.85 | 75,000 |