SGX M42F Thermal Coal - Daily Update 10 October 2019

October month-to date:

Futures volume at 25kt, Open interest at 153kt

 

Total volume since January 2019: 867kt

 

Physical

More activity emerged for Indonesian material. Relating to Indonesian supply, a Chinese trader said that current tenders will provide some much needed direction to the market, still recovering from the post-holiday lull in China.

"It's a mirage. The market is short and a tight squeeze is happening," the trading source said. For low-rank, deals were reported at $33.30/t FOB, basis 3,800 kc NAR, for a November loading geared vessel and $32.15/t FOB, basis 3,700 kc NAR, for an October loading geared vessel. Offers were reported at $33.80-34.00/t FOB, basis 3,800 kc NAR, for November loading geared vessels. An offer for a November loading Panamax was reported at $35.00/t FOB, basis 3,800 kc NAR. A bid for similar material was reported at $34.50/t FOB, basis 3,800 kc NAR, also for a November Panamax. On an index-linked basis, a deal was reported done flat to the average of M42/ICI4 for a geared vessel of 3,800 kc NAR material loading in November. An offer was also heard at flat to the same indices for October loading. A sub-bituminous tender for 12 Panamaxes loading across November to January was issued earlier in the week by Malaysia's TNB Fuels. Prices are to be offered on a fixed-price basis or index linked to M50, IHS McCloskey's Indonesian Sub-Bituminous FOB marker.

 

Paper

M42, listed on SGX, was bid for October at $33.30 and offered at $33.90, while November was bid at $33.50 and offered at $34.25, and December was bid at $33.25 and offered at $34.75. A bid was reported at $33.10 for Q4-19 against an offer at $34.30, while Q1-20 was bid at $34.00 and offered at $35.00. Further out Cal-20 was bid at $33.00 and offered at $35.00.

Source: IHS McCloskey.