Market overview from globalCoal for October 27

Failure to reach a debt solution at the latest Eurozone summit put further pressure on European currencies, leading to falls in key US$-denominated commodities. In line with this, financial coal values dropped again with the benchmark Cal 12 contracts falling respectively: API#2 by $1 and API#4 & swap NEWC by $0.75 as implied freight widens. The physical market remains quiet though index qualifying trades were heard being done in the Richards Bay hub as traders continue to unwind length there as Asian buying interest retreats. Meanwhile, front month Brent crude ended the day (@ 17:00) down again by $1.55 at ~109.35/bbl.

Phys NEWC bids during Asian were $ 116.75/mt for Dec'11 timing. The market continues to remain quiet as the Chinese are largely absent from the market and there are only a few tenders outstanding. Crude prices were up $ 1.30/bbl for Brent at 1pm Singapore time largely on the back of news that European leaders were set to approve an accord on 50% of the Greek writedown. (*)

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
26/10/2011	Phys API#4 Index	Q1'12	-$ 0.70	225000
27/10/2011	Phys NEWC Index	Dec'11	$ 0.00	25000
27/10/2011	Phys NEWC Index	Dec'11	$ 0.00	25000