Market overview from globalCoal for March 01

Coal markets saw a weak morning session, mainly with the API#2 contract falling. At one point the prompt API#2 was trading lower by ~$1 on yesterday's closing levels. An Apr DES trade at $95 helped consolidate this weakness. FOB markets fared better as the implied freight spread also lost ground. However, these early losses were short lived and markets rebounded to end the day almost unchanged. A resurgent oil market helped rally gas and power markets and accordingly coal also gained. With the Euro holding steady despite record EU unemployment figures it was the wider energy complex that drove prices higher. Brent crude ended the day strongly higher by ~$2.20/bbl to end at ~$1.25/bbl. Cal13 for API#2 ended lower by ~$0.30 whilst the API#4 and NEWC products were unchanged.

Week to date saw a couple of RB capes (Mar/Apr) change hands in the Indian market. Sentiment today was bearish with a few traders still sniffing around April caroges at $104.00/mt. India reported GDP growth near -3- year low of 6.1 pct during Oct- Dec'11, the slowest pace of expansion in 11 quarters due to slowdown in manufacturing and mining activity. On the Indo front, a utility has reportedly awarded 3x50kt cargoes of 5000 GAR single mine coal at $68/mt FOB for Mar/Apr/May shipments to a trader.

globalCoal trades this week

	Product	Expiry	Price	Volume	Origin	Delivery Point	EFP
27/02/2012	Phys ARA (DES)	Mar'12	$ 98.85	65,000	R	Antw
27/02/2012	Phys RB1	Apr'12	$ 105.25	50,000
28/02/2012	Phys ARA (DES)	Apr'12	$ 98.00	50,000	ACPRS	Rott
29/02/2012	Phys ARA (DES)	May'12	$ 98.00	50,000	CRS	Ams/Rot
29/02/2012	Phys ARA (DES)	Mar'12	$ 96.00	65,000	R	Amst	EFP
29/02/2012	Phys RB1	Mar'12	$ 104.90	50,000
29/02/2012	Phys RB1	Apr'12	$ 104.00	25,000
29/02/2012	Phys ARA (DES)	May'12	$ 97.00	50,000	ACPRS	Ams/Rot	EFP
01/03/2012	Phys RB1	Q1'13	$ 108.50	75,000
01/03/2012	Phys API#2 Index (DES)	Q2'12	-$ 3.50	150,000	ACPRS	Ams/Rot