Market overview from globalCoal for May 21

Physical coal markets started the week quietly although we did see a Jun DES trade at $83.00 going through mid afternoon. Paper markets took their lead from the physical on the prompt but from wider energy markets with regard to further dated products. Front months on the paper were pegged by physical offers, especially on the API#2. Further out on the paper curve we saw gains with a bounce in the Euro helping API#2 values whilst firmer gas and power prices helped all the main hubs higher on the Cal13 products. Brent also saw a correction higher after recent falls, with the front month Brent crude contract gaining ~$1.40/bbl to $108.50/bbl.

Sustained buying interest for RB emanating from cement majors in India as a spate of tenders are likely to be decided by the end of the week. The decision making has been hit by a devalued INR against USD last week. On Indo front, the price across various coals was seen to be coming off as Indo sellers are clearly feeling the absence of Chinese and Indian buyers from the spot market.

globalCoal trades this week

	Product	Expiry	Price	Volume	Origin	Delivery Point	EFP
21/05/2012	Phys ARA (DES)	Jun'12	$ 83.00	50,000	ACPRS	Rott