Market overview from globalCoal for June 22
Friday, June 22 2012 - 07:18 PM WIB
Coal markets ended the week on a quiet note with thin liquidity. Values were given a boost higher as a strongly correcting European power market surged higher by over ?1/MWh. With the Euro broadly unchanged coal took its lead from the firming power market and posted gains of ~$1.80 across the board. August DES traded at $87.70 late morning, up $2.70 from the previous August trade on Tuesday. Front month Brent crude finally posted gains after a bearish run this week, finishing the day higher by ~$1.30/bbl to close at ~$90.60/bbl level.
Indonesian coal suffered another round of price drop, with 5500NAR being offered $84-85/mt CFR South China for July shipments, down $3-4/mt from last week. Despite the lower prices, Chinese buyers have not been seen actively securing new cargoes. Most market participants opined that this situation of oversupply will require a long time to be rectified and do not see demand resurfacing this quarter.
| 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 | |||
| 22/06/2012 | Phys ARA (DES) | Aug'12 | $ 87.70 | 50,000 | C | Rott |