Market overview from globalCoal for August 1
Tuesday, August 2 2011 - 02:47 AM WIB
Early reports of a positive outcome to US debt talks saw equities and commodities rally before the resulting stronger US$ pushed $ denominated energy markets back down. Financial coal gained $0.50 across the three main indices in early trading before retreating in the afternoon to end the day broadly flat on the benchmark Cal 12 contracts. The physical market saw index qualifying deals being concluded in the ARA and Richards Bay hubs though interest was limited, largely due public holidays in Switzerland and Australia. Meanwhile, front month Brent crude fell $1.10 to end the day at ~$115.65 (@17:00).
The NEWC market today was valued $ 118.50/mt today ($ 117.50 bid/119.50 offered), which was unchanged from late last week. Bids appeared in Nov'11 at $ 121.00/mt this morning. Overall, there is still talk of limited demand out of China with exceptions to very low CV material and some limited demand through tenders (TPC's recent 20 panamax 5000 GAR tender). The broader market is awaiting more information about the U.S. Debt deadline as well as referring to crude prices in the absence of strong fundamentals in coal. (*)
globalCoal trades this week
| Product | Expiry | Price | Volume | Origin | Delivery Point | EFP | |
| 01/08/2011 | Phys ARA (DES) |
Sep'11 |
$ 125.50 |
50000 |
ACPRS | Rott |
EFP |
| 01/08/2011 | Phys ARA (DES) | Oct'11 | $ 126.00 | 50000 | ACPRS | Ams/Rot | EFP |