Market overview from globalCoal for July 11
Wednesday, July 11 2012 - 07:44 PM WIB
Coal markets fell again today with sharper physical offers helping paper fall having initially opened higher. In early morning trading paper markets took their lead from a bouncing oil market and gained ~$0.25c across the board. However, prompt physical coal offers soon altered the perception of value and from here on we saw values steadily eroded. By the close of play API#2 had dropped around $0.50 whilst the FOB markets fell further, dropping ~$0.75c. August RB1 tonnes traded $2.35/t lower than yesterday's level showing the prompt direction on physical RB1. Front month Brent held onto its gains and ended the day up by ~$2.25/bbl to close just above the $100/bbl level.
Lower CV Indonesian coal may have found a floor. A Chinese buyer looking to pick up prompt Indo 3800NAR cargo at $38/mt FOB could only find offers at $41/mt. Producers said that bids at this level is cutting very close to production cost and any price below $40 would not be attractive to them.
globalCOAL Trades this Week
| Product | Expiry | Price | Volume | Origin | Delivery Point | Add.Terms | |
| 09/07/2012 | Phys RB1 | Aug'12 | $ 88.50 | 50,000 | |||
| 09/07/2012 | Phys NEWC (FOB Newcastle) | Sep'12 | $ 88.50 | 25,000 | EFP | ||
| 09/07/2012 | SWAP NEWC Index | Q4'12 | $ 90.00 | 15,000 | |||
| 09/07/2012 | Phys NEWC (FOB Newcastle) | Oct'12 | $ 89.00 | 25,000 | |||
| 09/07/2012 | SWAP NEWC Index | Q4'12 | $ 89.75 | 15,000 | |||
| 10/07/2012 | Phys ARA (DES) | Sep'12 | $ 88.75 | 50,000 | ACPRS | Ams/Rot | EFP |
| 10/07/2012 | SWAP NEWC Index | 2013 | $ 95.25 | 60,000 | |||
| 10/07/2012 | Phys API#4 Index (FOB RB1) | 2013 | -$ 0.10 | 600,000 | |||
| 11/07/2012 | Phys RB1 | Aug' 12 | $ 84.15 | 150,000 |