Market overview from globalCoal for May 02

The current bearish grip on the market held firm today with physical and paper markets falling again. Lower oil and European gas prices helped continue the trend with the API#2 hub again seeing the largest falls. A number of July DES trades at $88/t highlighted the continued fall in prices, the previous day had seen bids at $91. The prompt on the API#2 paper saw values drop by ~$1.50 whilst on the API#4 values fell $1. The Swap NEWC held onto value better only falling ~$0.10. Oil lost ground and by the close of play had fallen by ~$1.50/bbl to $118.20/bbl.

A lacklustre trading market has many expecting further falls in coal prices in the prompt window. The Chinese market remains quiet with Golden Week continuing today. Bids for Australian 5500nar were seen at $88.50/t today for a 130kt parcel, lower than prices seen late last week. In the Indonesian market, bids for 4700nar were seen at $71/t FOB in 50kt from Samarinda and $83/t CFR Sth China.

globalCoal trades this week

	Product	Expiry	Price	Volume	Origin	Delivery Point	EFP
30/04/2012	Phys ARA (DES)	Jun'12	$ 90.50	50,000	ACPRS	Ams/Rot
30/04/2012	SWAP NEWC Index	Q1'13	$ 107.10	15,000
30/04/2012	SWAP NEWC Index	Q1'13	$ 107.10	15,000
30/04/2012	SWAP NEWC Index	Q1'13	$ 107.10	15,000
30/04/2012	SWAP NEWC Index	Q3'12	$ 102.50	15,000
01/05/2012	Phys ARA (DES)	May'12	$ 86.25	50,000	ACPRSU	Rott	EFP
01/05/2012	SWAP NEWC Index	Q1'13	$ 106.00	15,000
02/05/2012?	Phys API#2 Index (DES)	Jul'12?	-$ 3.50	50,000	ACPRS	Ams/Rot
02/05/2012	Phys ARA (DES)	?Jul'12	$ 88.00	50,000	ACPRS	Ams/Rot
02/05/2012	Phys RB1	Jun'12?	$ 97.00	150,000			EFP
02/05/2012	Phys ARA (DES)?	Jul'12	$ 88.00?	50,000	ACPRS	Rott