Market overview from globalCoal for January 26

Today saw further gains to physical markets, with March Richards Bay tonnes trading in the afternoon in the range of $108.50-108.75/t FOB, up from yesterday's best bid of $107.75/t FOB. Cal 12 paper was broadly flat on API2 & API4 contracts, while the same contract on Newc inched up by around $0.20/t. Oil consolidated yesterday's gains, but seeing front month Brent crude firm by $0.98/bbl near close of play to sit at $110.79/bbl.

Another quiet session for the Asian coal market with Australia and India away for Oz Day and Republic Day respectively. Prompt newc coal remains scarce with no offer shown for a Feb'12 bid at $126.50/mt. Amid the lukewarm interest from the Chinese and Indians, Indonesian coal price sentiment is weakening and market participants are showing bids of $72.00-$72.50/mt for 5000GAR materials, at least a couple of dollars off sellers' expectations.

globalCoal trades this week

	Product	Expiry	Price	Volume	Origin	Delivery Point	EFP
23/01/2012	Phys API#4 Index	Feb'12	$ 2.50	25,000
23/01/2012	Phys RB1	Mar'12	$ 105.75	50,000
25/01/2012	SWAP NEWC Index	2012	$ 114.00	60,000
25/01/2012	Phys ARA (DES)	Apr'12	$ 104.00	50,000	ACPRS	Ams/Rot	EFP
26/01/2012	Phys RB1	Mar'12	$ 108.50	50,000	?	?	?
26/01/2012	Phys RB1	Mar'12	$ 108.75	50,000	?	?	?