Market overview from globalCoal for January 16
Tuesday, January 17 2012 - 01:57 AM WIB
Despite the wave of negative sentiment triggered by the Eurozone-wide downgrades last week, commodities, equities and the Euro itself proved broadly stable today. However, the financial coal market fell hard again, losing $2 down the curve on the API#2 index, ~$1.50 on API#4 but only $1 on swap NEWC as the front end there remains well bid. Following the early trade on a Mar 12 NEWC panamax (at $115), the physical market started the week on a fairly tepid note with values tracking paper's direction down and bids proving hard to come by. Meanwhile, front-month Brent crude traded up $0.70 to end the day (@ 5pm) at ~$111.15/bbl on the back of Middle East concerns.
March loading cargo of 70kt phys newc traded at $115/mt. Prices have come back strongly after reaching a floor of ~$110.28 in mid Dec'11. Market participants have attributed the rebound to the lower production caused by wet weather and lack of explosives earlier. The tightness is expected to continue through Q1. On the demand side, the Indian buyers are gradually returning to the market albeit with lower price expectations. Bid for Feb 4200GAR Indo cargo was heard at $51/mt.
globalCoal trades this week
| Product | Expiry | Price | Volume | Origin | Delivery Point | EFP | |
| 16/01/2012 | Phys NEWC (FOB Newcastle) | Mar'12 | $115.00 | 70000 | ? | ? | ? |
| 16/01/2012 | SWAP NEWC Index | 2012 | $110.00 | 60000 |