SGX M42F Thermal Coal - Daily Update 18 September 2019

30kt traded in Wednesday T Session

• Oct-19 traded 30kt @ $32.75

 

September month-to date:

Futures volume at 72kt, open interest at 124kt

 

Total volume since April 2018: 1.25 million metric tonnes

 

Physical

An air of uncertainty has engulfed the Asian thermal coal markets as freight rates fluctuate on the back of the oil price spike after the drone attack in Saudi Arabia. Traders are being conservative in taking positions, but short-covering activities are still supporting prices. For low-rank, an offer was heard at $33.25/t FOB, basis 4,200 kc GAR, for a September loading geared vessel. On the same basis, an October loading Panamax was offered at $33.75/t FOB. There was talk of a trade at $33.75/t FOB, basis 4,200 kc GAR, for an October loading Panamax, though it was not confirmed by the seller and buyer. Lower-c.v. material was offered at $27.00/t FOB, basis 3,400 kc NAR, for an October loading geared vessel.

 

Paper

M42, listed on SGX, traded at $32.75 for 30,000 t loading in October, which is $0.05 down on where it traded last week at $32.80, but up on yesterday's mid-point of $32.60.  Other markets included September bid at $32.20 and offered at $32.50, while October was bid at $32.75 and offered at $32.90. November was bid at $32.75 and offered at $33.40, with December bid at $32.75 and offered at $34.85. Further out, Q1-20 was bid at $34.50 and offered at $35.50. A spread for November vs December was bid at minus $0.90 and offered at plus $1.50.

Source: IHS McCloskey