Market overview from globalCoal for May 24
Friday, May 25 2012 - 01:14 AM WIB
Coal prices initially fell away in early trading with further selling on continuing macro factors taking the lead. However, by late morning buying interest was spurred on by higher oil, power and Euro markets. Combined with some perceived profit taking we saw values recover and with implied freight rates continuing to rise the API#2 increased the most. Front month Brent gained just over ~$1 to $106.60/bbl whilst the Euro somehow remained at ?1.26 against the US$. API#2 rose by around $1 along the curve with API#4 and NEWC both posting gains of ~$0.50.
As stories of further defaults circle the market, there is clearer evidence that Chinese power plants are well supplied, with an average 25 days coverage of coal inventories. So as the Qinhuangdao coal market continues to fall, many believe imported coal will see further declines. gC Newc was bid and offered lower again today in Asian hours, with a mid-point of $91 for August.
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 |