Market overview from globalCoal for May 18

Although the coal market saw a subdued finish to the week we did see some physical trading on both the DES and RB hubs. With the recent coal conference in Nice and the European public holiday yesterday the markets started slowly. July DES traded at $85.60 whilst August traded at $87.50, on the RB1 July traded at $93.10. Paper markets again saw bearishness as API#2 and API#4 both lost ~$1.50 on the Cal 13 contract, NEWC fell by ~$2.00. Brent oil again lost value, with the front month Brent crude contract falling by ~$0.40/bbl to just above $107/bbl. Stocks again saw sharp falls as Eurozone fears continued to spook equity markets.

In Japan, since all the nuclear power stations have stopped, JPU's are concerned that energy requirements may not be met in the peak demand periods during the impending summer months. It seems that a breakdown of their power stations will cause serious shortage of power supply. In the broader Asian market, the gloomy outlook remains. Recent import volumes into China support the belief of many that the market is not quiet - just prices are continuing to fall - with mounting concerns in Europe, and local coals in surplus in India and China.

globalCoal trades this week

	Product	Expiry	Price	Volume	Origin	Delivery Point	EFP
18/05/2012	Phys ARA (DES)	Jul'12	$ 85.60	50,000	ACPRS	Amst	EFP
18/05/2012	Phys RB1	Jul'12	$ 93.10	50,000			EFP
18/05/2012	Phys ARA (DES)	Aug'12	$ 87.50	50,000	ACPRS	Ams/Rot