Market overview from globalCoal for April 19

Energy markets saw something of a bounce today after three consecutive days' losses. That said, it would appear that general sentiment from the Beijing CoalTrans conference is bearish so the outlook for coal remains fairly bleak as we approach Summer. Financial coal saw an early bout of selling before a round of profit taking in the afternoon session lead it to a minor recovery. However, the benchmark Cal 13 contracts all ended the day down: $0.30 on the API#2, $0.60 on the API#4 and $0.80 on the swap NEWC indices as spreads continue to narrow. In the physical market, interest is still skewed towards index contracts. Fixed price activity is thin although a June DES AR trade was concluded at a lower level in the European hub. Meanwhile, June Brent crude ticked up $0.50 to end the day (at 5pm London time) at ~$118.45/bbl.

On back of the bleak outlook emanating from CT Beijing, Indian RB bids were few and far between with some buyers showing May RB interest at sub 100 levels. A large cement producer concluded a 75kt & a 50kt May RB cargo at ~ $ 113.50/mt CFR Krishnapatnam and under $120/mt for CFR Pipavav respectively.

globalCoal trades this week

	Product	Expiry	Price	Volume	Origin	Delivery Point	EFP
16/04/2012	Phys ARA (DES)	Jun'12	$ 97.00	50,000	ACPRS	Ams/Rot	EFP
16/04/2012	Phys ARA (DES)	Jun'12	$ 96.90	50,000	ACPRS	Rott	EFP
17/04/2012	SWAP NEWC Index	Q2'12	$ 104.00	15,000
17/04/2012	Phys NEWC (FOB Newcastle)	Jun'12	$ 102.25	75,000			EFP, ND
17/04/2012	SWAP NEWC Index	Q3'12	$ 105.75	15,000
17/04/2012	SWAP NEWC Index	Q3'12	$ 105.75	15,000
19/04/2012	SWAP NEWC Index	Q1'13	$ 109.60	15,000
19/04/2012	ICE gC NEWC Coal Future	Q1'13	$ 109.60	15,000
19/04/2012	SWAP NEWC Index	Q2'12	$ 103.00	15,000
19/04/2012	Phys ARA (DES)	Jun'12	$ 95.25	50,000	ACPRS	Ams/Rot
19/04/2012	SWAP NEWC Index	Q3'12	$ 104.80	15,000