Market overview from globalCoal for January 31
Wednesday, February 1 2012 - 02:27 AM WIB
The coal market started the day with further bullishness as we saw paper initially gain strongly on the back of higher gas and power prices, especially on the API#2. However, as the morning wore on these gains were eaten into and values fell back sharply. With gas prices correcting and some physical selling apparent on the API#2 - witnessed by two Mar trades at $103/t - this led the way lower. With front month Brent and the Euro all losing value through the afternoon by close of play the API#2 Cal13 contract had lost nearly $2 whilst the API#4 lost around $1.50 and the Swap NEWC only ~$0.25.
Chinese buyers are still cautious about imports as the domestic price for 5500NAR softens to around 770RMB FOB Qinhuangdao ($121.65/mt), working out to be $104.00 excluding VAT. High stocks at major ports and utilities are also deterring them from entering the market for more coal. Indonesian market is particularly flat, with no sign of renewed interest from North Asian buyers.
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 |
| 31/01/2012 | Phys NEWC (FOB Newcastle) | Q3'12 | $ 113.75 | 225,000 | |||
| 31/01/2012 | Phys ARA (DES) | Apr'12 | $ 103.00 | 50,000 | ACPRS | Ams/Rot | EFP |
| 31/01/2012 | Phys ARA (DES) | Apr'12 | $ 103.00 | 50,000 | ACPRS | Ams/Rot | EFP |