Market overview from globalCoal for June 27

Coal markets continued to post bullish moves as we saw further gains in value on both paper and physical markets. Paper struggled to find direction in early trade but found guidance as the physical market posted some mild early gains. Physical interest was again prevalent in the prompt with Aug RB1 trading three times in morning trading at $87.00 whilst we also saw a Cal13 RB1 trade at $95.00 in late morning. By close of play it was the FOB markets that had risen whilst the DES ARA market was broadly unchanged, only gaining ~$0.15c. Both API#4 and NEWC gained ~$1 on the prompt and ~$0.75 on the Cal13 product. Brent crude rose again, today by ~$0.65/bbl $93.65/bbl.

Chinese domestic prices soften yet again, reflecting the current bearish sentiment. The QHD 55000NAR reference price decreased RMB 30 from last week to RMB 685-695. Bids from Chinese buyers for Australian High Ash 5500NAR coal are heard at $71/mt FOB for July laycan (capesize shipment) and $80/mt CFR South China for a panamax shipment arriving China in late July/August.

globalCOAL Trades this Week

	Product	Expiry	Price	Volume	Origin	Delivery Point	Add.Terms
26/06/2012	Phys NEWC (FOB Newcastle)	Aug'12	$ 88.00	30,000			ND
26/06/2012	Phys ARA (DES)	Aug'12	$ 89.25	50,000	ACPRS	Rott	EFP
26/06/2012	Phys RB1	Aug'12	$ 86.95	50,000
27/06/2012	Phys RB1	Aug'12	$ 87.00	50,000			EFP
27/06/2012	Phys RB1	Aug'12	$ 87.00	50,000
27/06/2012	Phys RB1	Aug'12	$ 87.00	25,000
27/06/2012	SWAP NEWC Index	Q4'12	$92.25	15,000
27/06/2012	Phys RB1	2013	$ 95.00	300,000
27/06/2012	SWAP NEWC Index	Q4'12	$92.50	15,000