SGX M42F Thermal Coal - Daily Update 18 July 2019

20kt traded in Thursday T Session

• Aug-19 traded 5kt @ $33.60

• Aug-19 traded 10kt @ $33.50

• Sep-19 traded 5kt @ $33.60

 

July month-to date:

Futures volume at a RECORD 141kt, open interest at a RECORD 111kt

 

Total volume since April 2018: 970kt

 

Physical

Prices in Indonesia were weakening with more offers than bids seen in the market. Chinese traders cited rising freight rates, and Chinese end users holding their CFR piece expectations steady, as primary reasons for lower bid levels. For low-rank, a Panamax was heard trading earlier in the week at around $35.50/t FOB, basis 3,800 kc NAR, for August loading. Offers were reported at $34.50/t FOB, $34.60/t FOB and $34.80/t FOB, basis 4,200 kc GAR, for an August loading geared vessel. Bids were reported from China at $33.00-33.75/t FOB, basis 3,800 kc NAR, for August loading geared vessels.

 

Paper

M42 paper, listed on SGX, traded multiple times today making this its most active week and July its most active month in terms of volume since the derivative launched in April 2018 and another signal of M42's growing acceptance in the market. August was trading at $33.50-33.60 while September traded at $33.60. July was bid at $35.00 and offered at $35.45, with August bid at $33.20 and offered at $34.00. A market for September was reported bid at $33.05 and offered at $34.00. Further out, Q4-19 was bid at $33.25 and offered at $34.05. (ends)