Market overview from globalCoal for March 08

Global markets strengthened again today, largely on the back of the deal on Greek debt drawing to a conclusion. As the energy complex saw gains across the board, the financial coal market did likewise with the Cal 13 contract adding around $1.00 on API#2 & 4 and $0.75 on swap NEWC. However, the physical market remains fairly stagnant as traders assess whether recent deals have marked the bottom of the market, particularly in the DES ARA hub. Meanwhile, April Brent crude continued its rally, trading up by $1.60 to end the day (@ 5pm) at ~$125.70/bbl.

Despite reports of rain in Oz, prices remained soft. Apr was offered at $108.25/mt, unchanged from the previous trading session. The bids from Chinese buyers have increased in number but not pricing. The bid/offer spread remains wide, made worse by the strengthening freight market. On the supply side, market participants shared that some Indonesian producers are facing increased cost of production caused mainly by higher diesel price.

globalCoal trades this week

	Product	Expiry	Price	Volume	Origin	Delivery Point	EFP
05/03/2012	Phys RB1	Apr'12	$ 103.80	25,000
05/03/2012	Phys RB1	Apr'12	$ 103.80	50,000
06/03/2012	SWAP NEWC Index	Q2'12	$ 109.00	15,000
06/03/2012	Phys ARA (DES)	Apr'12	$ 95.00	65,000	R	Ams/Rot
06/03/2012	Phys RB1	Apr'12	$ 103.60	50,000
07/03/2012	SWAP NEWC Index	Q2'12	$109.25	15,000