Market overview from globalCoal for January 20

Despite the Euro falling today after recent gains, the financial coal market saw values add a further ~$0.25 across the API#2 & API#4 indices while swap NEWC pushed up a $1 in a quiet end to the week. The underlying physical market saw bid-offer spreads track the paper market upwards but trading interest there remains focused on index as traders try to assess an overall price direction for the new year. Meanwhile, front-month Brent crude saw a correction, falling by $1.75 to end the day (@ 5pm) at ~$109.80/bbl.

There is an obvious increase in interest from buyers of newc cargoes in Feb, Mar and Apr. Apr's bid was at $114/mt, $0.50 lower than yesterday's trade. Supplies of newc coal for prompt delivery remains limited and offers coming only in smaller parcels. It is anticipated that market activity may pick up again after the Chinese buyers return from the Chinese New Year holidays end of January.

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
19/01/2012	Phys NEWC (FOB Newcastle)	Apr'12	$ 114.50	25,000
19/01/2012	Phys API#4 Index	Q2'12	-$ 0.25	225,000
20/01/2012	Phys NEWC (FOB Newcastle)	Apr'12	$ 116.00	25,000	?	?	?