SGX M42F Thermal Coal - Daily Update 18 September 2020

7kt traded in Friday T session

• Oct-20 traded 5kt @ $24.70

• Nov-20 traded 2kt @ $26.15

 

September month-to date:

Futures volume at 236kt, Open interest at a record 553kt

 

Total volume since January 2020: 2,615kt

 

Physical

Coal prices for Indonesian material grew once again on the week, carrying on the momentum from the past fortnight as enquiries improved for winter stocking. However, Indonesian producers remarked that bidding levels remain weak. Deals for prompt loading low-rank coal settled at $23.00-24.10/t FOB, basis 3,800 kc NAR, for Panamaxes. Deals for October loading geared vessels came through at $22.75-23.50/t FOB, basis 3,800 kc NAR, slightly higher than traded levels a week back at $22.50/t FOB, same basis. An index-linked deal was offered at M42 plus $0.25/t, basis 3,800 kc NAR, for an October loading geared vessel.

 

Paper

Futures trading was a little less active on the week, although values firmed and open interest continued to rise. M42 transacted via SGX at $24.30-24.75/t for October, compared with $23.80-24.05/t last week, while November concluded at $25.75 and $26.15/t, markedly up on $24.15-24.30/t the week before. Volumes for September to date of 236,000 t are 55% higher than the total for September 2019 when 152,000 t was transacted.

Source: IHS Markit