Market overview from globalCoal for December 06
Wednesday, December 7 2011 - 01:57 AM WIB
S&P's threat to cut Europe's triple-A sovereign rating overshadowed events today, hobbling the recent markets' rally. The financial coal market came off by an average of $0.60 on the benchmark Cal 12 contracts across the three main indices. Meanwhile, fixed price action returned to the physical market today where index qualifying contracts were concluded in the ARA and Richards bay hubs. Bucking the trend, front-month Brent crude ticked up $0.50 to end the day (@ 17:00) at ~$110.30/bbl.
Several Indian cement producers enquired about high sulphur US gulf pet coke as a substitute for imported coal, amidst muted buying mainly due to high interest rates(15 pct), depreciated INR and limited cash flow (money supply) in the market. One cement producer concluded a Jan'12 RB cape at minus 3.00. (*)
globalCoal trades this week
| Product | Expiry | Price | Volume | Origin | Delivery Point | EFP | |
| 05/12/2011 | Phys API#4 Index | Feb'12 | -$ 1.60 | 150000 | |||
| 06/12/2011 | Phys RB1 | Jan'12 | $ 104.00 | 75000 | ? | ? | ? |
| 06/12/2011 | Phys RB1 | Feb'12 | $ 104.00 | 50000 | ? | ? | EFP |
| 06/12/2011 | Phys ARA (DES) | Feb'12 | $ 111.75 | 50000 | ACPRS | Ams/Rot | EFP |