SGX M42F Thermal Coal - Daily Update 12 June 2019
Thursday, June 13 2019 - 06:17 AM WIB
June month-to date:
Futures volume 30kt, open interest 70kt
Total volume since April 2018: 804kt
Physical
The weather in Kalimantan remains the focus of attention for Indonesian suppliers, with heavy rain warnings still in place. It is understood another instance of force majeure was reported overnight, this time affecting a mine producing 3,400 kc GAR material. Expectations are that prompt prices could jump in response to supply disruptions caused by flooding, although no firm pricing evidence has emerged as yet. For low-rank material a bid was reported at $35.00/t FOB, basis 3,800 kc NAR, for a July loading geared vessel, although this was considered to be below market now due to the current flooding in South and East Kalimantan tightening supply.
Paper
Paper prices were generally softening in Asia today, although prompt M42 was finding some support on the back of supply disruption fears. M42 paper, as listed on SGX, was bid at $35.60/t and offered at $37.00/t for June, while July was bid at $35.75/t and offered at $36.65/t. (ends)