Market overview from globalCoal for December 28

The coal market ticked back off today, largely on the back of a softer energy complex coupled with a stronger US$. In seasonally thin trading, the financial coal market fell by around $0.45 on the benchmark Cal 12 contracts across the three main indices. The physical market was equally quiet although index qualifying trades were concluded in the FOB Richards Bay hub. Meanwhile, front-month Brent crude traded down over $0.50 to end the day (@ 2pm) at ~$108.75/bbl.

Vessels queues off Newcastle are continuing to grow, in what really now must be pointing to a genuine shortage of coal in NSW. Weather issues and delayed maintenance schedules have contributed to the delay. This is in stark contrast to Indonesian coal supply which has had an impressive run of supply in 2011. Newcastle was bid at $112 for March, and offered at $115.75 in reply in a quiet market. (*)

globalCoal trades this week

	Product	Expiry	Price	Volume	Origin	Delivery Point	EFP
28/12/2011	Phys RB1	Feb'12	$106.40	50000