Market overview from globalCoal for October 20

Coal markets found some support for the first time this week albeit in choppy trading. In early trading values dropped but by lunch markets had almost recovered all the early losses. Despite some bearish sentiment and uncertainty in the early afternoon prices rallied to end the day higher. Although gas and power and oil all slipped lower they could stop the correction of values in coal. Front month Brent crude fell $0.85/bbl.

Sovereign debt default fears in the west and sustained inflation & liquidity issues coupling with weak demand in China & India have had a downward spiral effect on the coal markets in Asia. RB Bids were reportedly held back in Indian market as buyers feel that they could well go down to $105-106/mt for Nov while Indian cumulative coal stocks at various ports climbed to 14 mill tonnes. (*)