Market overview from globalCoal for May 23

Coal today took its lead from outside factors and saw further falls in pricing across all hubs. With the Eurozone crisis continuing to impact market confidence we saw equities and the Euro all head lower. Oil markets also fell after holding steady yesterday, front month Brent lost around $2.65/bbl by the close of trading in London to end at $105.75/bbl. This widely bearish sentiment dragged other energy markets lower and coal was no exception. Both physical and paper markets fell away On the Cal13 API#2 lost $1 whilst again the FOB markets suffered more heavy losses, API#4 and NEWC Cal13 losing ~$1.40.

Amidst the glaring Chinese defaults, an Indian cement major concluded 2 x 75kt RB1 cargoes at an average price of $105.00/mt CIF Gangavaram & Krishnapatnam respectively for end June arrival. There are still a couple of large cement producers holding their purchases and hoping to close by the end of the week. The INR hit a historic low against USD today on back of the Eurozone crisis as FIIs continue to pull out of USD markets.

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
23/05/2012	Phys ARA (DES)	Jul'12	$ 83.50	50,000	ACPRSU	Ams/Rot