SGX M42F Thermal Coal - Daily Update 17 January 2020
Monday, January 20 2020 - 08:38 PM WIB
January month-to date:
Futures volume at 15kt, Open interest at 301kt
Total volume since January 2020: 15kt
Physical
Indonesian coal prices enjoyed a boost over the week, with Chinese buying power improving on the back of the currency strengthening and freight rates falling. The looming Lunar New Year was providing some impetus for business to be concluded, but also brought a tapering of activity as some have already finalised their purchasing ahead of the break. Heavy rain in Samarinda, East Kalimantan has also given rise to potential tightness in the market, particularly for low c.v. material in mid-February to March. Low c.v. material traded at $36.00/t FOB, basis 4,200 kc GAR, for February loading Panamaxes, reflecting a strong rise on the week. On a China-delivered basis, a February arrival Panamax traded at $40.80/t CFR, basis 3,800 kc NAR, stable on the week.
Paper
Swaps trading activity was quiet this week. Fair value for M42, listed on SGX, was seen at $34.50/t, up from traded levels for the month last week at $34.10/t. The Q2 contract was valued at $34.55/t while Cal-2020 averaged $34.45/t.
Source: IHS McCloskey