Market overview from globalCoal for May 14

The coal markets were subdued today reflecting the kick off of a coal conference in Nice and generally weaker energy markets. Front month Brent was down more than $1/bbl, closing below $111/bbl. The coal markets reflected the downturn as well losing a little more than $1 down the curve. A tight market was seen in June Richard's Bay with bids around 96.50 and offers around 97.50. Rumours of Indian buying interest for Richards Bay origin coal persist, but few deals have been heard concluded.

Despite monetary easing in China, equity markets across Asia continued their slump due to concern over the instability in Europe, particularly Greece. The absence of Chinese buyers in the markets have put pressure on coal prices from both Australia and Indonesia. Offers of prompt Indonesian 3800NAR coal were heard in the region of $50-51/mt FOB Sth Kalimantan, a slight decrease from last week's prices.(*)