Market overview from globalCoal for January 17
Thursday, January 19 2012 - 03:21 AM WIB
On the back of rumours that Italy may not suffer a further credit downgrade, European currencies rose against the US$ once more, lending support to dollar-denominated commodities. In tandom with stronger gas and power markets, financial coal market saw the Cal 12 contracts move up by $0.85 on API#2, $0.55 on API#4 and $0.30 on swap NEWC as the implied freight and FOB spreads widen. The underlying physical market remains uncertain as to overall price direction, hence the increase in trading on index basis, although a deal was heard concluded today on Mar DES AR at 103.85, around $2 over last done. Meanwhile, front-month Brent crude fell $0.90 to end the day (@ 5pm) at ~$110.65/bbl.
Buyers have taken an interest in April loading newc cargoes, with bids coming in at $108.50/mt and $110.00/mt.Market participants are mostly optimistic that production would step up and more coal would be available by Q2. Meanwhile, Chinese domestic prices have weakened further to ~RMB 750 FOB Qinhuangdao for 5500NAR coal. A capesize vessel of South African 6000NAR coal for February is heard offered at $119/mt CFR South China.
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 | |||
| 17/01/2012 | Phys NEWC Index | Mar'12 | $ 2.00 | 65,000 | ? | ? | ? |
| 17/01/2012 | Phys API#4 Index | Feb'12 | $ 1.15 | 50,000 | ? | ? | ? |