Market overview from globalCoal for October 25

In line with the prevailing view of this year, macro fears over sovereign debt in the Eurozone continues to dictate market sentiment as the latest summit meeting fails to provide a definitive solution. Financial coal values gained a $1 in early trading before correcting downwards in the afternoon to close the day broadly flat on last night across the three main indices. The physical market remains near-side focused and decidedly nervous with index qualifying trades being heard done in the DES ARA and Richards Bay hubs. Meanwhile, front month Brent crude ended the day (@ 17:00) down $0.90 at ~110.55/bbl.

Markets responded well over the news of Eurozone bailout while regional Asian markets remained placid & likely to respond by next early week if this structures well by the weekend. Meanwhile a Singapore based trader was found struggling to place a single mine 4900 Nar coal into China at US$ 89/mt. There are huge amount of floating cargoes in the Chinese markets and reports of reselling are aplenty. India remained quiet with festivities around the corner during this week with one Dec RB1 cargo changing hands at US$ 109/mt in 75kt last Friday. (*)

globalCoal trades this week

Product		Expiry	Price	Volume	Origin	Delivery Point	EFP
24/10/2011	SWAP NEWC Index	Q1'12	$ 117.00	15000
24/10/2011	Phys API#2 Index (DES)	Q1'12	$ 0.00	150000	ACPRS	Ams/Rot
24/10/2011	SWAP NEWC Index	Q1'12	$ 117.50	15000
25/10/2011	SWAP NEWC Index	Q1'12	$ 118.00	15000