Market overview from globalCoal for March 19

Coal markets started the week in lacklustre mode with thin trading across the hubs. Both physical and paper markets were subdued with limited volatility leaving values broadly unchanged on the day. Outside factors failed to spark interest with Brent crude tracking lower by $0.35/bbl on the day to close at $125.50/bbl whilst the Euro saw mild 0.5% gains against the US dollar.

The thermal coal market is still struggling for direction in Asia, with increased competition from a wider variety of coals, particularly US and Colombian coal in this region. The Chinese buying appetite is on the mend, but at low levels. Most see further weakness in prices, particularly for Indonesian coals that despite some rains are in surplus. The lifting of some Import taxes in India will surely see some higher bids in the market when it comes into effect, yet most see the Indian market still struggling to increase import volumes as the power sector struggles with capped tariffs. (*)