Market overview from globalCoal for December 05
Tuesday, December 6 2011 - 02:03 AM WIB
Today saw European equities and currencies rise on the back of positive Eurozone debt talks. In thin trading, the financial coal market had values on the benchmark Cal 12 contracts close ~$0.25 up across the three main indices. With a lack of clear direction from the paper market, the physical market remains focused on index only where the Richards Bay hub saw a cape trade at -$1.60 discount. Meanwhile, front-month Brent crude ticked up $0.50 to end the day (@ 17:00) at ~$110.40/bbl.
The cap on Chinese import prices at 800 RMB has many producers in Asia reconsidering their positions. Better prices are being achieved in other nations, albeit in smaller quantities, by large producers in Indonesia and Australia so it appears a two tier market is forming once again. The issues in the Mahakam River appear to have been alleviated and the bottleneck cleared. In Australia, vessel queues are continuing to grow, as a result of weather issues and railing delays, with the average waiting time around 16 days according to some.
globalCoal trades this week
| Product | Expiry | Price | Volume | Origin | Delivery Point | EFP | |
| 05/12/2011 | Phys API#4 Index | Feb'12 | -$ 1.60 | 150000 |