Market overview from globalCoal for January 05

Coal values firmed today, with February Richards Bay tonnes trading at 106/t FOB and then 106.25/t FOB (compared to yesterdays best bid at $104.50/t FOB). Later in the session this market was bid up to $106.50/t FOB. March also traded at $106/t FOB, and was bid higher at $106.15/t FOB on the follow, versus yesterday's best offer at $105.95/t FOB. Index premiums also turned positive at the front end, with the February RB1 index contract trading at +0.10 and +0.15. Paper ticked up in kind, with Cal 12 API2 and API4 contracts up around $0.30/t and $0.50/t respectively over the course of the session. Oil failed to extend yesterday's gains, with front month Brent crude at $113.48/bbl near close of play - down $0.22/bbl. In currency markets, the euro hit a 16 month low against the dollar, as ongoing concerns surrounding eurozone funding resulted in mass selling of the single currency.

Two of the largest Indian cement plants reported an increase in production of about 17 pct and 11 pct respectively on a m-o-m basis in Dec. In addition the market saw buying interest for Jan RB amidst tight liquidity, while a Feb RB is reported to have changed hands at around 105 in 50kt prior to opening of the European market. (*)

globalCoal trades this week

	Product	Expiry	Price	Volume	Origin	Delivery Point	EFP
05/01/2012	Phys RB1	Feb'12	$106.00	25000
05/01/2012	Phys RB1	Mar'12	$106.00	25000
05/01/2012	Phys RB1	Feb'12	$106.25	25000
05/01/2012	Phys API#4 Index	Feb'12	$0.10	25000
05/01/2012	Phys API#4 Index	Feb'12	$0.15	50000