Market overview from globalCoal for May 31

Coal markets continued to slip lower today, with Jul RB1 tonnes offered around $0.50/t lower than yesterday's best bid levels. Paper started strong, but lost ground over the course of the day, eventually seeing Cal 13 API2 & API4 lose around $1.50/t. Oil posted another weaker performance, with front month Brent crude tumbling $1.50/bbl to sit at $101.97/bbl near the close of play. Global shares were also lower today, the main reasons being that US growth concerns added to the ongoing eurozone fears.

The thermal coal market in Asia remained flat today - the first time in many weeks with some now predicting we have reached the bottom. gC Newc was bid and offered higher today for August with a mid-point in the mid $90's. The 5500nar Australian market is surprisingly tight, with few offers out the curve. Buying interest from China is around the $98 CFR Sth China level for a 5500nar type product, but with limited market interest beyond Q3'12. The Indonesian market remains oversupplied seeing more offers in the prompt than bids as many expect further falls in prices.

globalCoal trades this week

	Product	Expiry	Price	Volume	Origin	Delivery Point	EFP
28/05/2012	Phys API#2 Index (DES)	Jul'12	-$ 3.50	50,000	ACPRS	Amst
28/05/2012	Phys API#2 Index (DES)	Jul'12	-$ 3.00	50,000	C	Rott
29/05/2012	Phys ARA (DES)	Aug'12	$ 90.00	50,000	ACPRS	Ams/Rot
30/05/2012	Phys API#4 Index (FOB RB1)	Jun'12	$ 1.10	75,000
31/05/2012	Phys NEWC Index (FOB Newcastle)	Q1'13	-$ 0.60	150,000