SGX M42F Thermal Coal - Daily Update 10 January 2020

January month-to date:

 

Futures volume at 15kt, Open interest at 301kt

Total volume since January 2020: 15kt

 

Physical

An uptick in demand for Indonesian low-rank material was seen this week, mainly from Chinese buyers building stocks ahead of the Lunar New Year holidays. India, however, has not been booking cargoes as aggressively. Several Indonesian producers noted that more Chinese demand has been seen since Beijing eased import controls at the beginning of January. February-loading material traded at $34.00/t FOB, basis 3,800 kc NAR, also up week on week from $33.25-33.50/t FOB, same basis. Deals for low-rank coal settled at higher levels on the week with January loading geared vessels trading at $33.75/t FOB, basis 3,800 kc NAR, up from $33.25-33.55/t FOB, same basis, in the previous week. An index-linked deal concluded at M42/ICI4 plus $0.00/t, basis 4,200 kc GAR, for a geared vessel loading in February.

 

Paper

M42 traded via SGX for January at $34.05/t, up from $34.00/t over the week. February concluded at $34.10/t, up from fair value a week back at $34.05/t. A deal was done for March at $34.35/t. By Friday prices had primed. February was bid at $34.05 and offered at $34.70 with March bid at $34.05 and offered $34.80.

Source: IHS McCloskey