Market overview from globalCoal for June 29

Physical markets posted healthy gains today as prompt markets again rose on solid bid interest. August RB1 traded at $90/t which marks a $3 rise since the last trades on Wednesday. The index linked physical market for Aug RB also traded at API#4 + $0.25 highlighting the current shift in the perceived demand/supply balance in the prompt physical market. Further bullishness was injected to the market as oil moved strongly higher, posting huge gains of over $4/bbl to close the week at just under $95.50/bbl. This all helped boost paper levels, with values rising across the hubs. Cal 13 gained ~$0.60c on the API#2 whilst the FOB markets again outshone the ARA market, gaining ~$1/t.

For Phys NEWC market, liquidity was largely concentrated in September. Early on, it was bid at $90/mt and offered $91.75/mt. During the one-hour trading window, the bid moved a dollar lower and the offer followed suit, decreasing $0.75 to $91/mt. While the international market seems to made gains this week, the Chinese domestic scene has seen prices continue to soften, making it even more difficult for import coal to price in. Chinese buyers are all very bearish for Q3 and envisage Australian high ash 5500NAR to fall below $70/mt FOB.

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
28/06/2012	Phys ARA (DES)	Aug'12	$ 89.25	50,000	ACPRS	Ams/Rot	EFP
29/06/2012	Phys API#4 Index (FOB RB1)	Aug'12	$ 0.25	50,000
29/06/2012	Phys RB1	Aug'12	$ 90.00	50,000