Market overview from globalCoal for March 21

Coal markets again saw limited liquidity and volatility as markets continue to break out from their current ranges. All coal hubs gained marginally on a correcting Brent oil market and a broadly weaker US dollar. By close of business Brent had gained to finish ~$124.25 whilst the main coal hubs all gained ~$0.25.

Interest is picking up in the Chinese market since domestic prices have somewhat stabilised. According to market sources, some chinese traders with inventory or term contracts with suppliers would suffer a loss and offload the coal at a discount to spot prices. Given the high stockpile that still needs to be depleted, these discounts in the range of $1-2/mt could exert further downward pressure on prices.(*)