Market overview from globalCoal for February 10

Today saw some liquidity ebb back into the Richards Bay physical market, with a March loading cape trading at $105 FOB, while April changed hands later in the afternoon at $103.10 for 50kt. Feb DES was heard trading also, at $96 DES Rott for 110kt of Colombian, further highlighting the discount to prompt RB1 tonnes. Meanwhile, the financial coal market fell by a further $0.60+ across the board to cap off a truly bearish week.

Columbian coal may need to find an alternative destination amid the low price level for European-delivered coal. Coupled with a weak freight market, arbitrage opportunities are beginning to open up for Chinese buyers. Despite market participants mostly bearish about prompt demand for imported thermal coal in China, a few cargoes of Columbian coal were heard sold at $115/mt into China last week. However, the acceptance price level seems to have been lowered again following further softness of domestic coal prices in China.

globalCoal trades this week

	Product	Expiry	Price	Volume	Origin	Delivery Point	EFP
07/02/2012	ICE Rotterdam Coal Futures	Q4'12	$ 112.00	15,000
07/02/2012	ICE Rotterdam Coal Futures	Q4'12	$ 112.05	15,000
07/02/2012	Phys NEWC Index	Q3'12	$ 0.45	75,000
07/02/2012	Phys ARA (DES)	Feb'12	$ 97.50	75,000	ACPRSU	Rott
08/02/2012	Phys NEWC (FOB Newcastle)	Apr'12	$ 115.00	25,000			EFP
08/02/2012	Phys ARA (DES)	Mar'12	$ 98.00	70,000	ACPRSU	Ams/Rot	EFP
09/02/2012	Phys NEWC (FOB Newcastle)	Apr'12	$ 114.00	25,000
09/02/2012	SWAP NEWC Index	Q3'12	$ 110.00	15,000
10/02/2012	Phys RB1	Mar'12	$ 105.00	150,000	?	?	?
10/02/2012	Phys RB1	Apr'12	$ 103.10	50,000	?	?	EFP?