Market overview from globalCoal for October 26
Thursday, October 27 2011 - 01:39 AM WIB
Failure to reach a debt solution at the latest Eurozone summit put further pressure on European currencies, leading to falls in key US$-denominated commodities. In line with this, financial coal values dropped again with the benchmark Cal 12 contracts falling respectively: API#2 by $1 and API#4 & swap NEWC by $0.75 as implied freight widens. The physical market remains quiet though index qualifying trades were heard being done in the Richards Bay hub as traders continue to unwind length there as Asian buying interest retreats. Meanwhile, front month Brent crude ended the day (@ 17:00) down again by $1.55 at ~109.35/bbl.
Public holidays in India/Singapore have amplified an already quiet physical market. The Indonesian market is still quiet and waiting for Chinese bids to emerge. Recent tenders into Korea and Japan should provide some signals as to price direction as well as how much South African was offered into the Genco tenders. Many buyers in Asia are well supplied and are in a wait and see mode with respect to prices. (*)
globalCoal trades this week
| Product | Expiry | Price | Volume | Origin | Delivery Point | EFP | |
| 24/10/2011 | SWAP NEWC Index | Q1'12 | $ 117.00 | 15000 | |||
| 24/10/2011 | Phys API#2 Index (DES) | Q1'12 | $ 0.00 | 150000 | ACPRS | Ams/Rot | |
| 24/10/2011 | SWAP NEWC Index | Q1'12 | $ 117.50 | 15000 | |||
| 26/10/2011 | Phys API#4 Index | Q1'12 | -$ 0.70 | 225000 | |||