SGX M42F Thermal Coal - Daily Update 20 December 2019

December month-to date:

Futures volume at 240kt, Open interest at 315kt

 

Total volume since January 2019: 1,354kt

 

Physical

Transacted levels for Indonesian material eased from the week prior as the market began to weaken in view of the year-end holidays. Trading activity was generally weak with several market sources saying they would rather wait until after Chinese New Year, falling on 25 January 2020. An index linked trade for low c.v. coal was settled at M42/ICI4 plus $0.00/t, basis 4,200 kc GAR, for a January loading geared vessel. Low-rank coal transacted at lower prices on the week. Trades for January loading geared vessels settled at $34.00-34.15/t FOB, basis 3,800 kc NAR, down from around $34.50/t FOB, same basis, last week. A trade for December was heard done at $34.50/t FOB, basis 3,800 kc NAR, also for a geared vessel.

 

Paper

Momentum was maintained over the week for M42 paper trading activity, as listed on SGX. Deals were settled via SGX for January at $33.95/t, before rising to $34.15/t in the latter half of the week, though this was lower on the week by $0.05/t. February traded at $33.94/t, down from $34.20/t last week.

Source: IHS McCloskey