Market overview from globalCoal for February 24

Today saw much improved liquidity in the DES AR index market, with a plethora of Q4'12 deals concluded at $-1.50/t to the API2 index. Prompt markets were fairly quiet in comparison, with April Richards Bay trading at $106/t - flat to yesterday's best offer. Paper markets ticked higher over the session, with Cal 13 API2 up around $0.40/t, while the same contract on API4 gained nearer $0.50/t. Oil was broadly unchanged near close of play, with front month Brent valued at $123.66/bbl near the end of the day.

With Qinhuangdao stockpile over 8MT, Chinese buyers are not showing much buying appetite unless the pricing is very attractive. Meanwhile, an April loading cape of Oz 5500NAR high ash coal was heard sold CFR basis South China at $103.50/mt, which would net back to a FOB value of about $90/mt, far lower than the offers that have been reported recently.

globalCoal trades this week

	Product	Expiry	Price	Volume	Origin	Delivery Point	EFP
21/02/2012	Phys API#4 Index	Mar'12	$ 2.50	50,000
21/02/2012	Phys RB1	Q4'12	$ 107.00	225,000
21/02/2012	Phys ARA (DES)	Apr'12	$ 99.50	50,000	ACPRS	Rott	EFP
21/02/2012	Phys RB1	2013	$ 109.50	300,000
21/02/2012	Phys ARA (DES)	Apr'12	$ 99.50	50,000	ACPRS	Rott
22/02/2012	Phys RB1	2013	$ 111.00	300,000
22/02/2012	Phys RB1	Q1'13	$ 111.00	75,000
24/02/2012	Phys API#2 Index (DES)	Q4'12	-$ 1.50	150,000	ACPRS	Ams/Rot
24/02/2012	Phys API#2 Index (DES)	Q4'12	-$ 1.50	150,000	ACPRS	Ams/Rot
24/02/2012	Phys RB1	Apr'12	$ 106.00	25,000
24/02/2012	Phys API#2 Index (DES)	Q4'12	-$ 1.50	150,000	ACPRS	Ams/Rot
24/02/2012	Phys API#2 Index (DES)	Q4'12	-$ 1.50	150,000	ACPRS	Ams/Rot
24/02/2012	Phys API#2 Index (DES)	Q4'12	-$ 1.50	150,000	ACPRS	Ams/Rot
24/02/2012	Phys API#2 Index (DES)	Q4'12	-$ 1.50	150,000	ACPRS	Ams/Rot