FUTURES REPORT

Market Fundamentals

    South Korean coal imports

    Coal imports by South Korea remained steady inMay, edging 0.5 Mt lower on the previous monthto 10.2 Mt, trade statistics show. Total importsduring January to May 2013 of 52.2 Mt werealmost unchanged from the correspondingperiod in 2012, comprising 8.3 Mt of cokingcoal, 3.2 Mt of anthracite and 40.7 Mt of steamcoal.

    Trading Commentary

    CAPE

    The physical market continued to see betternumbers especially after the ongoingexpectation of an index gain previous toprevious day's gains. Q3 traded up to a high of9000 pre index, q4 up to 13250, cal 14 12300,but post index (+1084usd) the rally began withq3 trading up to 9600, q4 up to 13600, cal 14up to 12500, cal 15 14500, cal 16 15850.

    PMX

    The pmx market opened with a few offers alongthe curve as Q3 traded down to 6350 and the q4was sold at 7300 as was the cal 14. Bidsreturned to the market in the afternoon with Julytrading up to 6650 and q3 up to 6500. Bidinterest remains on the June 2a trading up to13900 and bid on whilst the Q3 sees sellingpressure at 13400.

    SMX + HANDY

    The smx paper opened with early buyinginterest in the nearby months as the marketticked up with July trading at 9250. Septemberwas paid outright at 8250 as the Q3 traded upfrom 8400 to 8550. The Q4 came underpressure early on as it traded down to 8600 butfound support later in the day to reach a high of8650 where it closed. Depth remains on bothsides of the deferred periods as the Cal 14closed valued at 8675.