SGX M42F Thermal Coal - Daily Update 11 October 2019

October month-to date:

Futures volume at 25kt, Open interest at 153kt

 

Total volume since January 2019: 867kt

 

Physical

Indonesian material was in higher demand this week, with both India and Chinese buyers showing interest. Low-rank coal traded for October at $32.15/t FOB, basis 3,700 kc NAR, for a geared vessel. The previous week, a deal was done at $33.00/t FOB, basis 3,800 kc NAR. November loading material traded at $33.30-33.65/t FOB, basis 3,800 kc NAR and at $32.85/t FOB, basis 3,700 kc NAR, both for geared vessels. On an index-linked basis, a deal was heard concluded at flat to the average of M42/ICI4, basis 3,800 kc NAR, for a November loading geared vessel. Offers for November loading geared vessels emerged at M42/ICI4 +$0.25/t, basis 4,200 kc GAR.

 

Paper

M42 traded via SGX this week at $34.00 for 25,000 t loading in November. Fair value for the M42 Q4-2019 contract was $33.68 this week up from $33.48, last week. The Q1-2020 contract averaged at $34.25, easing slightly from $34.50 on the week. Cal-2020 fair value averaged around $34.00.

 Source: IHS McCloskey.