SGX M42F Thermal Coal - Daily Update 14 February 2020

55kt traded in Friday T Session

    Mar-20 traded 25kt @ $35.60

    Mar-20 traded 15kt @ $35.50

    Apr-20 traded 15kt @ $35.25

    

February month-to date:

Futures volume at 280kt, Open interest at a RECORD 402kt

 

Total volume since January 2020: 392kt

 

Physical

Coal prices in Indonesia rose further over the week as supply tightened and as Chinese short-covering continued amid the coronavirus outbreak. But loading delays emerging from authorities stepping up checks at ports because of the epidemic are preventing some suppliers from capitalising on the recent price growth. Stocks are understood to be low among some Indonesian miners who had been contending with heavy rainfall since the start of the year. "We have sold to traders and can't really take advantage of the current spike in prices," one East Kalimantan miner said. Several miners have also committed to domestic end-users and are determined to fulfil contracts, and avoid the recently introduced levies should they fail to meet their Domestic Market Obligation (DMO). Trades for March loading low c.v. cargoes were reported at $36.50-37.00/t FOB, basis 3,800 kc NAR, in geared vessels. Further out, markets for April were heard offered at $36.50-37.00/t FOB, basis 3,800 kc NAR, against bids at $35.15-35.75/t FOB, same basis, for geared vessels. On a China-delivered basis, low c.v. deals settled at $42.00-42.50/t CFR, basis 3,800 kc NAR, for March arrival Panamaxes.

 

Paper

Momentum continued for swaps trading activity this week. M42, transacted via SGX, at $35.50-35.75/t for March, easing slightly from traded levels last week at $36.00/t. April traded at $35.25-35.45/t. Open interested reach a new record high over the week breaching 400,000 t for the first time.

 

Source: IHS McCloskey