Market overview from globalCoal for May 11

In a subdued end to the week we saw limited liquidity as many participants held off further activity until after next week's Nice coal conference. With both paper and physical markets quiet and lacking direction, coal markets initially fell on a weaker Euro and slightly softer Brent oil pricing. Once this step lower had been set levels remained range bound and all main coal hubs ended the day lower by $0.75. Front-month Brent crude ended the day lower by ~$0.30/bbl to ~$112.40/bbl.

The Chinese are expecting a further slowdown of the economy and for electricity demand to remain subdued in the coming months. With abundant rain in the South, the increase in hydroelectric output will put pressure on coal-fired generation. The price gap between Indonesian producers and Chinese buyers is slowly narrowing, with single mine 3800NAR Indonesian coal for June delivery offered at $50-51/mt FOB Sth Kalimantan and bid just below $50/mt.

globalCoal trades this week

	Product	Expiry	Price	Volume	Origin	Delivery Point	EFP
08/05/2012	SWAP NEWC Index	Q1'13	$ 106.00	15,000
08/05/2012	Phys NEWC (FOB Newcastle)	Jul'12	$ 99.00	25,000			ND
08/05/2012	Phys ARA (DES)	Jun'12	$ 85.00	50,000	ACPRS	Rott	EFP
08/05/2012	Phys RB1	Jun'12	$ 96.70	150,000
08/05/2012	Phys RB1	Jun'12	$ 97.00	150,000
08/05/2012	Phys RB1	Jun'12	$ 97.00	25,000
09/05/2012	Phys ARA (DES)	Jun'12	$ 85.50	75,000	U	Amst	EFP
09/05/2012	SWAP NEWC Index	Q4'12	$ 103.25	15,000
10/05/2012	SWAP NEWC Index	Q4'12	$ 104.00	15,000