SGX M42F Thermal Coal - Daily Update 20 March 2020

30kt traded in Thursday T+1 Session

• Apr-20 traded 30kt @ $32

March month-to date:

Futures volume at 445kt, Open interest at a RECORD 523kt

 

Total volume since January 2020: 897kt

 

Physical

Sustained weakness in demand brought further pressure to Indonesian coal prices over the week, with more cargoes heard being deferred by overseas buyers. "Some clients, especially from China, are backing out of prior commitments due to the lower prices currently," a Jakarta-based trader said. In the low-rank coal market, trades for April loading material concluded at $31.60-32.00/t FOB, basis 3,800 kc NAR, for geared vessels. This is down from trades the previous at $32.00-33.00/t FOB, basis 4,200 kc GAR, also for April loading geared vessels. Markets for similar grade coal for loading in geared vessels in April were heard bid at $30.00-32.25/t FOB, basis 3,800 kc NAR, against offers at $33.00/t FOB, same basis. Further out, markets for May remained wide with a bid heard at $30.25/t FOB, basis 3,800 kc NAR, for a geared vessel, against offers at $33.50-34.00/t FOB, same basis.

 

Paper

For M42, transacting via SGX, only deals for April went through over the week, trading multiple times at $32.00/t for a total of 70,000 t. This was lower than traded levels the previous week at $32.55-33.50/t. This continues to see March as the most traded month since M42 launched, currently standing at 445,000 t cleared via the exchange, with open interest also a record high of 523,000 t.

 

Source: IHS McCloskey.