Market overview from globalCoal for November 16

Despite continuing Eurozone debt concerns and falling equities and commodities, financial coal values bucked the trend and actually gained ~$1.25 across the three main indices today. The physical market enjoyed its busiest day in weeks with index-qualifying trades being concluded in the DES ARA and Richards Bay hubs. Meanwhile, front month Brent crude ticked down $0.80 to end the day (@ 17:00) at ~$111.45/bbl.

Newc remains tight with few tonnes seen in the prompt. During Asian trading hours, there was a Jan'12 bid at $113.50 and the only offer coming in wide at $115.50. On the demand side, China is still well-stocked and not expected to resume buying any time soon. Possibility of incurring demurrage is also deterring Chinese buyers at the moment, with vessels queues in South China extensive. Stockpiles in India ports are still high and the recent e-auction by Coal India failed to garner interest from the market, despite the low inventory level at some of the power plants inland.(*)

globalCoal trades this week

Product		Expiry	Price	Volume	Origin	Delivery Point	EFP
16/11/2011	Phys NEWC Index	Dec'11	$ 0.00	25000
16/11/2011	Phys RB1	Jan'12	$ 106.50	75000
16/11/2011	Phys RB1	Jan'12	$ 106.50	50000
16/11/2011	Phys RB1	Jan'12	$ 106.60	50000
16/11/2011	Phys RB1	Feb'12	$ 108.25	75000
16/11/2011	Phys ARA (DES)	Jan'12	$ 115.75	50000	ACPRS	Ams/Rot	EFP