Thermal Coal Update

Summary

Australian and Indonesian thermal coals are facing downward pressure as a result of reduced prices in the Chinese market, caused by lower consumption at coastal plants and decent stockpiles. Derivatives were also trading lower on Chinese exchanges. Although there does seem to be some physical activity going on as some buyers seem prepared to wear the demurrage risk for customs delays in China, on Australian cargos.

Australia

April FOB Newc TRADED $ 58.50/mt in 150kt High-Ash 5500NAR

April FOB Newc $57.75 Bid / $59.50 Offered 150kt High-Ash 5500NAR

April FOB Newc heard traded at $92.50 for 25kt via globalCOAL

June FOB Newc heard $94.25 bid / $96.50mt offered in 25kt after the above trade

Indonesia

March FOB Heard Traded around $41.00 in 75kt Basis 3800NAR

April FOB $41.00 Bid heard in 75kt basis 3800NAR following the above trade

3400 NAR material was heard bid $31.75 for a geardvessel loading April

1HApril FOB $59.75 Offered in 75kt 4800NAR

May FOB $50.60 Offered 75kt basis 4400NAR