SGX M42F Thermal Coal - Daily Update 20 August 2019

5kt traded in Tuesday T Session

• Sep-19 traded 5kt @ $31.20

 

August month-to date:

Futures volume at 97kt, open interest at 162kt

 

Total volume since April 2018: 1.15 million metric tonnes

 

Physical

The force majeure situation at an East Kalimantan miner, due to low water levels, has been cited as helping to support some prompt prices. While the affected mine produces 4,400 kc GAR material, other grades are being sought as a means of covering short positions. A deal was reported for a September-loading Panamax out of East Kalimantan at around $33.50/t FOB, basis 4,200 kc GAR. Bids and offers were "all over the place" according to one market participant. A bid was also heard at $31.75/t FOB, basis 3,800 kc NAR, for a September loading geared vessel. However, elsewhere, offers were reported at $31.50-32.00/t FOB, basis 3,800 kc NAR, for September loading geared vessels. On an index-linked basis, an offer was reported at the average of M42/ICI4 plus $0.25/t for a Supramax of 4,200 kc GAR material loading in September.

 

Paper

M42 paper, listed on SGX, traded for September at $31.20. August was bid at $31.60 and offered at $31.95, with September bid at $31.15 and offered at $31.40. Q4-19 was bid at $30.50 and offered $31.50, with Q1-20 bid at $33.25 and offered at $34.30, and Q2-20 bid at $33.35 and offered at $34.90. Spreads were reported for September vs October bid at minus $0.15 and offered at plus $0.30, with October vs November bid at minus $0.15 and offered at plus $0.40, and November vs December bid at minus $0.75 and offered at plus $0.15. (ends)