Market overview from globalCoal for October 17

Prices started the week by losing ground in physical and paper markets amid a quiet session. November RB1 tonnes were heard trading at $111.25 - down $0.50/t from the previous session best offer. Paper lost ground out to Cal 12 across all three major hubs, all down around $0.30/t. Coals weakness was mirrored in the oil market, with front month Brent crude losing $1.25/bbl by 17:04 BST to sit at $110.98/bbl.

Chinese interest for imports still remains decidedly cool, despite increases in the local coal prices late last week. Many have assumed that the Chinese would return for their traditional December deliveries for the winter months, but bids are lower than prices seen several weeks back. Indonesian production has been well ahead of targets, yet there has been reports of rains in Kalimantan that may halt current production. (*)