Market overview from globalCoal for January 30
Tuesday, January 31 2012 - 01:53 AM WIB
The coal market continued the bullish tone set last week, opening strongly as European gas and power prices gained. After these initial gains we saw values slip back as the Euro fell away through the morning and oil prices fell back. The gains we had seen early on in coal were eroded and by the end of the day we had seen values fall almost back to unchanged on Friday's closing levels. The API#2 contract gave up the most value only ending higher by $0.25 whilst the FOB contracts managed to hold on to gains of ~$0.60. Meanwhile, March Brent fell by $0.40 to end the day at ~$111/bbl.
The phy newc market picked up from where it left off on Friday with bid/offer for Apr'12 at 116.00/119.00. Wet weather continues to hamper production in the valley, with an estimated 600kt tonnes affected for the month of February. Some market participants believe that the tightness should ease after Q1, on the back of strong production forecast from producers. Chinese buyers are back from the week long Chinese New Year but not showing any firm buying interest yet.
globalCoal trades this week
| Product | Expiry | Price | Volume | Origin | Delivery Point | EFP | |
| 30/01/2012 | Phys ARA (DES) | Mar'12? | $ 105.00 | 50,000? | ACPRS | Rott | EFP |