SGX M42F Thermal Coal - Daily Update 17 February 2020

February month-to date:

Futures volume at 280kt, Open interest at 402kt

 

Total volume since January 2020: 392kt

 

Physical

Asia's thermal markets started the week slowly with offers remaining high, although buy-side interest appeared to be down on last week. Sentiment was mixed as to what the week would bring, with some suggesting the market was still tight while others feel prices peaked last week and will begin to soften. Demand for Indonesian material from China appears to have slowed following bullish buying in the weeks prior. Several trading sources cited stronger domestic production in China as a key factor for a lack of bids. A low-rank geared vessel was reported to be offered at $36.50/t FOB, basis 3,800 kc NAR, for March loading. For April loading geared vessels, a market was heard bid at $$35.10/t FOB, basis 3,800 kc NAR, against an offer at $35.95/t FOB, same basis. Panamaxes were heard offered at $37.50/t FOB, basis 3,800 kc NAR, for February loading and $38.00-38.75/t FOB, same basis, for loading in March.

 

Paper

M42 paper, listed on SGX, was softening, following on from the trend on Friday when March traded at $35.50-35.60 and April traded at $35.25, all for a total of 55,000 t. February was bid at $36.25 and offered at $36.50. Further out, March was bid at $35.05 and offered at $35.85, while April was bid at $34.85 and offered at $35.50. A spread for March/April was also reported earlier in the day, bid at $0.50 and offered at $0.70.

 

Source: IHS McCloskey