Market overview from globalCoal for January 27

The wider energy complex ended the week on a firm note once again, with coal, oil, gas and power markets all posting gains. The financial coal market saw the benchmark Cal 13 contract move up by an impressive $2.00 on API#2 and around $1.65 on the API#4 and swap NEWC indices. The physical market continues to reflect the new year's bullish sentiment and although no index qualifying trades were concluded, bid-offer spreads all moved up in line with paper. The Newcastle hub remains well bid and that in turn has supported Richards Bay - though the European market is well stocked, that too appears to have found its floor and rebounded in the last week. Meanwhile, March Brent rose by $0.60 to end the day (@ 5pm) at ~$111.40/bbl.

The tightness in the Newcastle market continues due to limited supply in the prompt market and torrential rain in northern NSW and QLD. As a result the index has climbed past $117/mt. Indonesia, on the other hand has been having relatively good production run and producers are hoping that demand will pick up when the Chinese buyers return from the CNY break. Indo suppliers are heard offering 63/61GAD material at ~ $90/mt. Interest from India for 5000gar type material from Indonesia was seen at $74 with offers closer to $76.00.

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
27/01/2012	Phys NEWC Index	Q4'12	$ 0.50	150,000	?	?	?
27/01/2012P	hys API#2 Index (DES)	Apr'12	-$ 1.50	50,000?	ACPRS?	Ams/Rot	?