Market overview from globalCoal for March 16

The week ended with paper making slight gains, despite physical markets remaining fairly subdued. Cal 13 API2 and API4 contracts both gained around $0.60/t throughout the session, while physical bid/offer spreads were fairly flat to the previous day. June DES tonnes were bid up to $97.70/t DES AR, having traded at $98/t DES AR yesterday. Papers gains were reflected in oil markets, with front month Brent crude gaining $1.95/bbl near close of play to sit at $124.55/bbl. Wall Street inched near to its best level since post financial crisis, as bullish circles bet on the banks having passed recent stress testing.

Union Budget in India today saw customs duty slashed from 5 pct to zero levied on the imported coal used by Power Plants: the impact of this will be seen when a clear picture emerges in a couple of weeks time. Fresh enquires were few and far-between in the market as March is the financial year end for most Indian companies, and arranging a new Letter of Credit may be difficult for such new deals.

globalCoal trades this week

	Product	Expiry	Price	Volume	Origin	Delivery Point	EFP
12/03/2012	Phys RB1	May'12	$103.25	5,0000
13/03/2012	Phys NEWC (FOB Newcastle)	Apr'12	$104.25	50,000
13/03/2012	Phys NEWC (FOB Newcastle)	Apr'12	$104.25	25,000			EFP
13/03/2012	Phys RB1	May'12	$103.00	50,000			EFP
14/03/2012	Phys RB1	Apr'12	$ 103.45	150,000
14/03/2012	Phys ARA (DES)	Apr'12	$ 94.00	50,000	ACPRS	Rott
15/03/2012	Phys ARA (DES)	Jun'12	$ 98.00	50,000	ACPRS	Ams/Rot