SGX M42F Thermal Coal - Daily Update 14 August 2020
Monday, August 17 2020 - 07:58 PM WIB
August month-to date:
Futures volume at 65kt, Open interest at 366kt
Total volume since January 2020: 2,205kt
Physical
A general lack of buying interest continued to weigh down Indonesian coal prices over the week. "Demand from China and India is really weak for low-rank material. Trading and bidding levels have returned to an unbearable level," a source from a key producer said. Deals for what was called 'distressed cargoes' of low c.v. coal were heard at $23.00-23.50/t FOB, basis 3,800 kc NAR, for August loading geared vessels. For September loading, a trade went through at around $24.00/t FOB, basis 3,800 kc NAR, in a geared vessel. The bid-offer gap for October remained wide with bids heard up to $23.75/t FOB, basis 3,800 kc NAR, against offers at $25.00-26.00/t FOB, same basis.
Paper
Swaps trading activity slowed considerably in the week. M42 traded via SGX for a Q4 contract, settling at $26.25/t, down from transacted levels of $27.60/t, a week ago. Last reported markets were bid at $23.75 for August, against an offer at $24.20. September was bid at $23.25 and offered at $24.30, while October was bid at $23.85 and offered at $25.50. Q4-20 was bid at $25.25 and offered at $36.05.
Source: IHS Markit