SGX M42F Thermal Coal - Daily Update 19 March 2021

65kt traded in the Friday T session

NLT

    Mar-21 traded 45kt @ $37.90

    May-21 traded 5kt @ $39.85

    May-21 traded 10kt @ $39.25

    Jun-21 traded 5kt @ $40.25

Swaps

    NIL

March month-to date:

Futures Volume at 540kt, Open Interest at 891kt

Swaps Volume at 0kt, Open Interest at 50kt

Total volume since January 2021: 2,662kt

 

Physical

Indonesian coal prices declined for another week as the rise in freight rates continues to give buyers less reason to commit right away to spot tonnage. Bids were scarce, several trading sources confirmed, including a Jakarta-based market participant, who said, "We have not seen bids this week. Freight rates are crazy. We used to ship Supramaxes to Thailand when rates were $5.00/t and now it's almost tripled." Slight tightness in supply due to heavy rains in parts of South Kalimantan have done little to support prices. Producers say this is affecting their availability of May spot cargoes. Low-rank coal transacted at $36.25-36.75/t FOB, basis 3,800 kc NAR, for April loading geared vessels, marking a significant drop in prices on the week from $38.75/t FOB, same basis, also for an April loading Panamax. Further out, May was bid at $35.50/t FOB, basis 3,800 kc NAR, for a geared vessel, stable to levels heard last week. However, no offers were heard in return.

 

Paper

The M42 paper market moved in mixed directions this week with a healthy flow of deals done via SGX. March deals concluded at $37.50-37.90/t, easing from $38.00-38.25/t a week back. Transactions for April were done at $37.20-37.75/t, stable to traded levels last week at $37.25-37.50/t. May M42 traded at $37.50-39.25/t, while a Q2 deal went through at $38.50/t.

 

Source: IHS Markit