SGX M42F Thermal Coal - Daily Update 1 May 2020
Monday, May 4 2020 - 05:49 PM WIB
May month-to date:
Futures volume at 0kt, Open interest at 116kt
Total volume since January 2020: 994kt
Physical
Indonesian low c.v. coal prices have been pushed to four-year lows as demand continues to be eroded by COVID-19, particularly in India. A Jakarta-based trading source said, "We have had multiple discussions with Indian buyers and they keep requesting for postponement. We need to quickly divert Indian cargoes to other markets." While the Chinese market remains active, many Indonesian suppliers lamented the low bidding levels, keeping many sidelined from the spot market. In the low-rank market, multiple trades went through for May at $23.50-25.00/t FOB, basis 3,800 kc NAR, for geared material, sharply declining from traded levels of $26.00-26.30/t FOB, same basis, in the week prior. June loading geared vessels transacted at $24.50-25.00/t FOB, basis 3,800 kc NAR. Bids as low as $22.00/t FOB, basis 3,800 kc NAR, for June loading geared vessels, have been heard this week, forcing offers to disappear for lower rank coals (basis 3,000-3,400 kc NAR). Last week, offers were heard at $23.00/t FOB, basis 3,400 kc NAR, for a May loading geared vessel.
Paper
A number of trades went through for M42 this week via SGX at $25.15/t for May, compared with $25.00-25.50/t, a week ago, while June transacted at $25.50/t. Latest markets reported were bid for May at $23.00 and offered $24.50, with Jun bid at $24.25 and offered at $26.00 and July was bid at $25.00. Further out, bids were reported at $25.00 for Q3-20 and $25.25 for Q4-20.
Source: IHS McCloskey