SGX M42F Thermal Coal - Daily Update 14 June 2019
Monday, June 17 2019 - 04:15 AM WIB
June month-to date:
Futures volume 30kt, open interest 70kt
Total volume since April 2018: 804kt
Physical
Extreme weather in Indonesia's Kalimantan region prompted several producers to declare force majeure, with others also having to contend with heavy showers that slowed production and loading activity. But the supply constraints did little to boost Indonesian thermal coal prices which have continued to weaken on the week. However, some miners believe that the flash floods and non-stop rains that is plaguing both East and South Kalimantan will provide support to the market moving forward. Trades were heard settled at $36.00-37.00/t FOB, basis 3,800 kc NAR, for a July loading Panamaxes, and $35.25-36.00/t FOB, same basis, in geared vessels. The number of offers also appeared to outweigh bids this week, reflecting persistently weak demand.
Paper
M42, as listed on SGX, traded earlier in the week at $35.90 for June, but uncertainty over direction following the flooding in Kalimantan put participants in more cautious mode. A week ago, M42 deals settled at $35.40-36.00. Latest markets were reported bid at $36.00 and offered at $37.00 for June, while July was bid at $36.00 and offered at $36.65. (ends)