SGX M42F Thermal Coal - Daily Update 14 May 2020

34kt traded in Thursday T Session

    Jun-20 traded 12kt @ $26.85 (Jun-20/Jul-20 spread @ $0.55)

    Jul-20 traded 12kt @ $27.40 (Jun-20/Jul-20 spread @ $0.55)

    Jul-20 traded 10kt @ $28

May month-to date:

Futures volume at 86kt, Open interest at 188kt

Total volume since January 2020: 1,080kt

 

Physical

Prices for mid and lower c.v. material continue to firm in Asian thermal markets, largely supported by Chinese buying. For Indonesian low-rank material, multiple deals were reported for June loading geared vessels at $26.00/t FOB, basis 4,200 kc GAR. This is up around $2.00/t on where value was being pegged in the past two weeks. A Panamax was understood to have traded at around $26.75/t FOB, basis 4,200 kc GAR, for June loading. A geared vessel loading in July was also bid at $26.50/t FOB, basis 3,800 kc NAR. An offer was also reported for a late May, early June loading geared vessel at $31.50/t FOB, basis 4,250 kc NAR. On an index-linked basis, offers were heard for June loading geared vessels at flat to the average of the M42 and ICI4 indices for shipments of 4,200 kc GAR.

 

Paper

M42 traded on SGX today for a spread of June vs July at minus $0.55/t for 12,000 t on each month. This was followed by a deal for July at $28.00 for 10,000 t. Later in the day May was bid at $25.10, with June bid at $26.10 and offered at $27.90, while July was bid at $27.00. A market for a spreads of June vs July was bid at minus $0.80 and offered at minus $0.40. July vs August and August vs September were both bid at minus $0.75 and offered at minus $0.10. Further out, Q3-20 was bid at $27.00 and offered at $29.20, while Q4-20 was bid at $28.00 and offered at $29.50.

 

Source: IHS McCloskey