Market overview from globalCoal for February 1
Thursday, February 2 2012 - 02:37 AM WIB
The coal market today continued to correct after its recent rally. Physical and paper markets opened the day lower and continued to slide through the day. Coal largely ignored external factors and traded off its own fundamentals with the API#2 leading markets lower. Perceptions of plentiful coal supply in Europe led the API#2 downwards and an Apr DES trade at $100.50 confirmed the bearish sentiment. The RB and Newcastle markets also lost value but not to the same degree. Both the Euro and Brent oil had gained through the day with the Euro up over 1.2c against the US dollar and front month Brent higher by ~$1.15/bbl to $112.15/bbl.
Chinese buyers are still cautious about imports as the domestic price for 5500NAR softens to around 770RMB FOB Qinhuangdao ($121.65/mt), working out to be $104.00 excluding VAT. High stocks at major ports and utilities are also deterring them from entering the market for more coal. Indonesian market is particularly flat, with no sign of renewed interest from North Asian buyers.
globalCoal trades this week
| Product | Expiry | Price | Volume | Origin | Delivery Point | EFP | |
| 30/01/2012 | Phys ARA (DES) | Mar'12 | $ 105.00 | 50,000 | ACPRS | Rott | EFP |
| 31/01/2012 | Phys NEWC (FOB Newcastle) | Q3'12 | $ 113.75 | 225,000 | |||
| 31/01/2012 | Phys ARA (DES) | Apr'12 | $ 103.00 | 50,000 | ACPRS | Ams/Rot | EFP |
| 31/01/2012 | Phys ARA (DES) | Apr'12 | $ 103.00 | 50,000 | ACPRS | Ams/Rot | EFP |
| 01/02/2012 | Phys ARA (DES) | Apr'12 | $ 100.50 | 50,000 | ACPRS | Ams/Rot | EFP |
| 01/02/2012 | Phys API#2 Index (DES) | Q1'13 | -$ 0.60 | 150,000 | ACPRS | Ams/Rot |