Market overview from globalCoal for May 22

Today saw bearish sentiment envelop the coal markets as news of possible Asian bound supply re-entering the market send markets lower. With physical markets seeing weaker levels the paper duly followed. Even with firmer gas markets, Brent oil largely range bound (lower by ~$0.20/bbl) and the weaker euro pointing to limited volatility, we saw prices tumble sharply and barely recover. On the paper markets API#2 lost ~$1.50 on the prompt and $1 on the Cal13. The FOB markets were hit harder with the API#4 off ~$2.50 and the NEWC off ~$2.25 in the prompt.

Rumours of Chinese parties defaulting and delaying cargos has further rattled the market, with prices continuing to fall in the prompt. Some traders and producers are saying that there is a distinct lack of bids at any price, with the reported volumes into China much higher this year than last year, pointing to an oversupplied market. Some Indonesian producers have agreed to push back deliveries till later in the year.

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
22/05/2012	SWAP NEWC Index	Q4'12	$ 99.00	15,000
22/05/2012	SWAP NEWC Index	Q4'12	$ 97.90	15,000
22/05/2012	SWAP NEWC Index	Q1'13	$ 100.00	15,000
22/05/2012	SWAP NEWC Index	Q4'12	$ 96.75	15,000