Market overview from globalCoal for July 13
Friday, July 13 2012 - 10:49 PM WIB
Moody's downgrade of Italy set a bearish tone for early trading in global markets today. However, the energy complex soon recovered, led in a large part by bullish sentiment in the oil market. The financial coal market registered gains on all three main indices with the benchmark Cal 13 contracts moving up by ~$0.90 across the board. The physical market ended the week on a decidedly quiet note, with bid-offer spreads moving up in line with paper (despite overhanging bearish fundamentals), although one index qualifying trade was recorded in the DES ARA hub for Sept, $1 higher than yesterday. Meanwhile, Aug Brent crude rose ~$1.40 to end the day (at 5pm London time) at $102.35/bbl.
Issues with defaulted or delayed cargos by Asian buyer continues to plague the market. Market participants believe that prices will continue to be weak until these cargos are washed through the system. Large stockpiles in China remain, and Indian appetite remains subdued while monsoons prevail. In the gC Newc market, bid and offers for the prompt were between $85 and $85.50 in September in Asian hours, ~ $0.50 cent lower than Thursday market. In Indonesia bids were received at $74 for 5500nar type material, and in the low CV market prices were received at $57 for 4700nar and offer at $59 FOB from East Kalimantan.
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 | |||
| 12/07/2012 | Phys ARA (DES) | Sep'12 | $ 86.50 | 50,000 | ACPRS | Ams/Rot | EFP |
| 13/07/2012 | Phys ARA (DES) | Sep'12 | $ 87.50 | 50,000 | ACPRS | Ams/Rot | EFP |