SGX M42F Thermal Coal - Daily Update 21 August 2020

30kt traded in FridayT session:

    Oct-20 traded 15kt @ $24.10 (Oct-20/Nov-20 spread @ $0.90)

    Nov-20 traded 15kt @ $25 (Oct-20/Nov-20 spread @ $0.90)

August month-to date:

Futures volume at 174kt, Open interest at 429t

Total volume since January 2020: 2,314kt

 

Physical

Indonesian thermal coal prices moved down once again on the week, as national holidays on Monday, Thursday and Friday compounded persistently weak buying interest. China and India's still latent need for imports kept a lid on trading at higher levels, with cargoes still freely available in the forward months. A Jakarta-based trader said that a transaction for low-rank material into India failed to settle at the last minute - bearing out the weak demand. Low c.v. material traded at $23.20-23.50/t and at $23.80/t FOB, basis 3,800 kc NAR, for a September loading geared vessel and Panamax, respectively. The week before, a deal went through for a cross laycan August/September geared vessel at $23.20/t FOB, same basis. Markets for October were bid at $22.00-23.25/t FOB, basis 3,800 kc NAR, for geared vessels, against offers at $24.75-25.25/t FOB, same basis, lower than levels seen last week.

 

Paper

Trading interest for M42 grew on the week with multiple deals settled via SGX for a total of over 100,000 t. September traded at $23.75/t at the start of the week before transacted levels slipped to $23.20/t in the latter period. October traded at $24.10 while November was done at $25.00. Several deals went through for Q4 contracts at $25.70/t, down on traded levels the previous week at $26.25/t.

 

Source: IHS Markit