Market overview from globalCoal for May 15

The coal markets took a pause in lieu of the Nice conference today, and sold off comparatively gently compared to the heavy downward movements that have been observable in recent trading sessions. Low liquidity was also prevalent as European paper closed down 50cts on average across the curve, whilst APi#4 and NEWC closed down approximately 40cts on average. The June RB1 market remained tight with bids outweighing offers, the bid side being supported by several Indian market enquiries in anticipation of the monsoon season. European and Asian markets, coal and non-coal, continue to be affected by the serious systemic failure of the European banking system which sent EUR/USD to a 4 month low, beneath 1.28.

Even though June RB was valued around $97.00 FOB, Indian traders were seen holding to their bids today. There is about 400kt June/July RB to be bought as cement majors enter the market anticipating further softness. On the Indo front, firm bids were few and far between as none of the major Utility tenders has been finalised.(*)