Market overview from globalCoal for February 3

A subdued finish to the week for coal markets saw thin trading on both physical and paper market. Physical markets were range bound but on paper the API#2 gained ~0.75c on the Cal13 whilst the FOB hubs remained broadly unchanged on the previous day. Prompt gas prices rose on continued cold weather in Europe whilst flooding in Australia provided upward sentiment. Oil was higher by nearly $1/bbl but this had limited effect overall on coal.

State disaster has been declared as flood waters rise in South-west Queensland and Northern NSW. Further South, the Gunnedah region and the Hunter Valley have also been affected by heavy flooding, with the rivers not likely to peak until Sunday. Most Newcastle exporters are losing production with estimates of 1 million tonnes already loss according to some, so the prompt months are looking precariously tight. On the demand side, chinese buyers have yet to show much appetite for imported coal. Domestic coal prices and coastal freight rates have both been weakening, some market participants opined that the domestic prices have reached its floor and should be well supported at current level. Korean tenders look to have been well offered as well.

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
03/02/2012	Phys ARA (DES)	Mar'12	$ 101.50	50,000	ACPRS	Ams/Rot	EFP