Market overview from globalCoal for September 14

Macro issues dominated wider market sentiment for the day again with renewed concerns over Euro debt and the possibility of Greece defaulting. Financial coal values ticked off by ~$0.75 on the benchmark Cal 12 contracts across the three main indices, largely on the back of the continuing price correction seen in the physical markets. The physical market itself saw index-qualifying trades being concluded in the DES ARA and Richards Bay hubs at levels approx. $1 lower than yesterday - indeed, Richards Bay in particular looks well offered for the balance of the year. Meanwhile, front-month Brent crude went in the opposite direction, gaining $0.35 to end the day (@ 17:00) at ~112.25/bbl.

Values indicated by Chinese traders CFR China for 5800, 5500, 5000 NAR bid prices are as follows: $ 118/mt, $ 112/mt, $ 98/mt today. Freights from Oz-S.E. China ~ $ 15-16mt, so the bids indicated are still $97/mt FOB Oz on a netback basis (bid price). Some saying the best prices they saw from Chinese during last week's conference was 119-120 cfr basis 5500 NAR, which is at the top end of the estimates from late last week (~ 103.50/mt for branded material done fob 5500 NAR). (*)

globalCoal trades this week

Product		Expiry	Price	Volume	Origin	Delivery Point	EFP
12/09/2011	Phys RB1	Nov'11	$ 117.00	50000			EFP
12/09/2011	Phys RB1	Nov'11	$ 117.25	50000
13/09/2011	Phys NEWC (FOB Newcastle)	Nov'11	$ 123.25	25000			EFP
14/09/2011	Phys ARA (DES)	Nov'11	$ 121.50	50000	ACPRS	Ams/Rot	EFP